Correlation Between Bosung Power and SEOWONINTECHCoLtd
Can any of the company-specific risk be diversified away by investing in both Bosung Power and SEOWONINTECHCoLtd at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bosung Power and SEOWONINTECHCoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and SEOWONINTECHCoLtd, you can compare the effects of market volatilities on Bosung Power and SEOWONINTECHCoLtd and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bosung Power with a short position of SEOWONINTECHCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and SEOWONINTECHCoLtd.
Diversification Opportunities for Bosung Power and SEOWONINTECHCoLtd
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bosung and SEOWONINTECHCoLtd is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and SEOWONINTECHCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOWONINTECHCoLtd and Bosung Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bosung Power Technology are associated (or correlated) with SEOWONINTECHCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOWONINTECHCoLtd has no effect on the direction of Bosung Power i.e., Bosung Power and SEOWONINTECHCoLtd go up and down completely randomly.
Pair Corralation between Bosung Power and SEOWONINTECHCoLtd
Assuming the 90 days trading horizon Bosung Power Technology is expected to under-perform the SEOWONINTECHCoLtd. In addition to that, Bosung Power is 2.67 times more volatile than SEOWONINTECHCoLtd. It trades about -0.02 of its total potential returns per unit of risk. SEOWONINTECHCoLtd is currently generating about 0.02 per unit of volatility. If you would invest 500,999 in SEOWONINTECHCoLtd on October 12, 2024 and sell it today you would earn a total of 47,001 from holding SEOWONINTECHCoLtd or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. SEOWONINTECHCoLtd
Performance |
| Timeline |
| Bosung Power Technology |
| SEOWONINTECHCoLtd |
Bosung Power and SEOWONINTECHCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and SEOWONINTECHCoLtd
The main advantage of trading using opposite Bosung Power and SEOWONINTECHCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, SEOWONINTECHCoLtd can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SEOWONINTECHCoLtd will offset losses from the drop in SEOWONINTECHCoLtd's long position.| Bosung Power vs. Iljin Display | Bosung Power vs. Lotte Data Communication | Bosung Power vs. Nice Information Telecommunication | Bosung Power vs. SCI Information Service |
| SEOWONINTECHCoLtd vs. KMH Hitech Co | SEOWONINTECHCoLtd vs. GemVaxKAEL CoLtd | SEOWONINTECHCoLtd vs. Bosung Power Technology | SEOWONINTECHCoLtd vs. Busan Industrial Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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