Correlation Between GS Retail and Osang Healthcare
Can any of the company-specific risk be diversified away by investing in both GS Retail and Osang Healthcare 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 GS Retail and Osang Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Osang Healthcare Co,Ltd, you can compare the effects of market volatilities on GS Retail and Osang Healthcare 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 GS Retail with a short position of Osang Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Osang Healthcare.
Diversification Opportunities for GS Retail and Osang Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between 007070 and Osang is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and Osang Healthcare Co,Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osang Healthcare Co,Ltd and GS Retail 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 GS Retail Co are associated (or correlated) with Osang Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osang Healthcare Co,Ltd has no effect on the direction of GS Retail i.e., GS Retail and Osang Healthcare go up and down completely randomly.
Pair Corralation between GS Retail and Osang Healthcare
Assuming the 90 days trading horizon GS Retail Co is expected to under-perform the Osang Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, GS Retail Co is 2.68 times less risky than Osang Healthcare. The stock trades about -0.35 of its potential returns per unit of risk. The Osang Healthcare Co,Ltd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,158,000 in Osang Healthcare Co,Ltd on October 13, 2024 and sell it today you would earn a total of 175,000 from holding Osang Healthcare Co,Ltd or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
GS Retail Co vs. Osang Healthcare Co,Ltd
Performance |
| Timeline |
| GS Retail |
| Osang Healthcare Co,Ltd |
GS Retail and Osang Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Osang Healthcare
The main advantage of trading using opposite GS Retail and Osang Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, Osang Healthcare 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 Osang Healthcare will offset losses from the drop in Osang Healthcare's long position.| GS Retail vs. LG Household Healthcare | GS Retail vs. Sempio Foods Co | GS Retail vs. Inzi Display CoLtd | GS Retail vs. CKH Food Health |
| Osang Healthcare vs. GS Retail Co | Osang Healthcare vs. LG Household Healthcare | Osang Healthcare vs. Daishin Information Communications | Osang Healthcare vs. CKH Food Health |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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