Correlation Between MohenzCoLtd and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both MohenzCoLtd and Ewon Comfortech 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 MohenzCoLtd and Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MohenzCoLtd and Ewon Comfortech Co, you can compare the effects of market volatilities on MohenzCoLtd and Ewon Comfortech 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 MohenzCoLtd with a short position of Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MohenzCoLtd and Ewon Comfortech.
Diversification Opportunities for MohenzCoLtd and Ewon Comfortech
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MohenzCoLtd and Ewon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding MohenzCoLtd and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech and MohenzCoLtd 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 MohenzCoLtd are associated (or correlated) with Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of MohenzCoLtd i.e., MohenzCoLtd and Ewon Comfortech go up and down completely randomly.
Pair Corralation between MohenzCoLtd and Ewon Comfortech
Assuming the 90 days trading horizon MohenzCoLtd is expected to generate 0.5 times more return on investment than Ewon Comfortech. However, MohenzCoLtd is 2.0 times less risky than Ewon Comfortech. It trades about -0.28 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.24 per unit of risk. If you would invest 256,000 in MohenzCoLtd on August 26, 2024 and sell it today you would lose (21,000) from holding MohenzCoLtd or give up 8.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MohenzCoLtd vs. Ewon Comfortech Co
Performance |
| Timeline |
| MohenzCoLtd |
| Ewon Comfortech |
MohenzCoLtd and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MohenzCoLtd and Ewon Comfortech
The main advantage of trading using opposite MohenzCoLtd and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MohenzCoLtd position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| MohenzCoLtd vs. LG Chemicals | MohenzCoLtd vs. Lotte Chemical Corp | MohenzCoLtd vs. Hyundai Steel | MohenzCoLtd vs. Korea Petro Chemical |
| Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech vs. Busan Ind | Ewon Comfortech vs. Mirae Asset Daewoo | Ewon Comfortech vs. UNISEM 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |