Correlation Between Bosung Power and Seers Technology
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Seers Technology 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 Seers Technology 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 Seers Technology, you can compare the effects of market volatilities on Bosung Power and Seers Technology 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 Seers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Seers Technology.
Diversification Opportunities for Bosung Power and Seers Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bosung and Seers is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Seers Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seers Technology 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 Seers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seers Technology has no effect on the direction of Bosung Power i.e., Bosung Power and Seers Technology go up and down completely randomly.
Pair Corralation between Bosung Power and Seers Technology
Assuming the 90 days trading horizon Bosung Power is expected to generate 1.74 times less return on investment than Seers Technology. But when comparing it to its historical volatility, Bosung Power Technology is 2.31 times less risky than Seers Technology. It trades about 0.42 of its potential returns per unit of risk. Seers Technology is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,052,000 in Seers Technology on October 27, 2024 and sell it today you would earn a total of 359,000 from holding Seers Technology or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. Seers Technology
Performance |
| Timeline |
| Bosung Power Technology |
| Seers Technology |
Bosung Power and Seers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Seers Technology
The main advantage of trading using opposite Bosung Power and Seers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Seers Technology 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 Seers Technology will offset losses from the drop in Seers Technology's long position.| Bosung Power vs. Ssangyong Information Communication | Bosung Power vs. Daechang Steel Co | Bosung Power vs. Daishin Information Communications | Bosung Power vs. Nature and Environment |
| Seers Technology vs. Ssangyong Information Communication | Seers Technology vs. Wireless Power Amplifier | Seers Technology vs. Digital Power Communications | Seers Technology vs. Korea Computer |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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