Correlation Between Bosung Power and APro
Can any of the company-specific risk be diversified away by investing in both Bosung Power and APro 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 APro 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 APro Co, you can compare the effects of market volatilities on Bosung Power and APro 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 APro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and APro.
Diversification Opportunities for Bosung Power and APro
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosung and APro is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and APro Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APro 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 APro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APro has no effect on the direction of Bosung Power i.e., Bosung Power and APro go up and down completely randomly.
Pair Corralation between Bosung Power and APro
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 1.08 times more return on investment than APro. However, Bosung Power is 1.08 times more volatile than APro Co. It trades about -0.01 of its potential returns per unit of risk. APro Co is currently generating about -0.05 per unit of risk. If you would invest 416,500 in Bosung Power Technology on October 28, 2024 and sell it today you would lose (107,500) from holding Bosung Power Technology or give up 25.81% 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. APro Co
Performance |
| Timeline |
| Bosung Power Technology |
| APro |
Bosung Power and APro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and APro
The main advantage of trading using opposite Bosung Power and APro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, APro 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 APro will offset losses from the drop in APro's long position.| Bosung Power vs. Hyundai Green Food | Bosung Power vs. Haitai Confectionery Foods | Bosung Power vs. Ilji Technology Co | Bosung Power vs. Eugene Technology CoLtd |
| APro vs. Ecopro BM Co | APro vs. Sangsin Energy Display | APro vs. Bosung Power Technology | APro 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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