Correlation Between Bosung Power and MPLUS Corp
Can any of the company-specific risk be diversified away by investing in both Bosung Power and MPLUS Corp 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 MPLUS Corp 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 mPLUS Corp, you can compare the effects of market volatilities on Bosung Power and MPLUS Corp 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 MPLUS Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and MPLUS Corp.
Diversification Opportunities for Bosung Power and MPLUS Corp
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosung and MPLUS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and mPLUS Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mPLUS Corp 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 MPLUS Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mPLUS Corp has no effect on the direction of Bosung Power i.e., Bosung Power and MPLUS Corp go up and down completely randomly.
Pair Corralation between Bosung Power and MPLUS Corp
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 1.3 times more return on investment than MPLUS Corp. However, Bosung Power is 1.3 times more volatile than mPLUS Corp. It trades about 0.0 of its potential returns per unit of risk. mPLUS Corp is currently generating about -0.03 per unit of risk. If you would invest 293,500 in Bosung Power Technology on September 18, 2024 and sell it today you would lose (38,000) from holding Bosung Power Technology or give up 12.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. mPLUS Corp
Performance |
| Timeline |
| Bosung Power Technology |
| mPLUS Corp |
Bosung Power and MPLUS Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and MPLUS Corp
The main advantage of trading using opposite Bosung Power and MPLUS Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, MPLUS Corp 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 MPLUS Corp will offset losses from the drop in MPLUS Corp's long position.| Bosung Power vs. Korea New Network | Bosung Power vs. Solution Advanced Technology | Bosung Power vs. Busan Industrial Co | Bosung Power vs. Busan Ind |
| MPLUS Corp vs. Ecopro BM Co | MPLUS Corp vs. Sangsin Energy Display | MPLUS Corp vs. Solution Advanced Technology | MPLUS Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |