Correlation Between Bosung Power and RS Automation
Can any of the company-specific risk be diversified away by investing in both Bosung Power and RS Automation 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 RS Automation 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 RS Automation CoLtd, you can compare the effects of market volatilities on Bosung Power and RS Automation 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 RS Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and RS Automation.
Diversification Opportunities for Bosung Power and RS Automation
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bosung and 140670 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and RS Automation CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RS Automation CoLtd 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 RS Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RS Automation CoLtd has no effect on the direction of Bosung Power i.e., Bosung Power and RS Automation go up and down completely randomly.
Pair Corralation between Bosung Power and RS Automation
Assuming the 90 days trading horizon Bosung Power Technology is expected to under-perform the RS Automation. But the stock apears to be less risky and, when comparing its historical volatility, Bosung Power Technology is 3.63 times less risky than RS Automation. The stock trades about -0.05 of its potential returns per unit of risk. The RS Automation CoLtd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,639,000 in RS Automation CoLtd on November 27, 2024 and sell it today you would earn a total of 116,000 from holding RS Automation CoLtd or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. RS Automation CoLtd
Performance |
| Timeline |
| Bosung Power Technology |
| RS Automation CoLtd |
Bosung Power and RS Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and RS Automation
The main advantage of trading using opposite Bosung Power and RS Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, RS Automation 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 RS Automation will offset losses from the drop in RS Automation's long position.| Bosung Power vs. Insung Information Co | Bosung Power vs. Lotte Data Communication | Bosung Power vs. Korea Information Engineering | Bosung Power vs. SV Investment |
| RS Automation vs. Sangsangin Investment Securities | RS Automation vs. NH Investment Securities | RS Automation vs. LB Investment | RS Automation vs. Daejung Chemicals Metals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |