Correlation Between Booster and GS Engineering
Can any of the company-specific risk be diversified away by investing in both Booster and GS Engineering 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 Booster and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booster Co and GS Engineering Construction, you can compare the effects of market volatilities on Booster and GS Engineering 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 Booster with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booster and GS Engineering.
Diversification Opportunities for Booster and GS Engineering
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Booster and 006360 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Booster Co and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and Booster 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 Booster Co are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of Booster i.e., Booster and GS Engineering go up and down completely randomly.
Pair Corralation between Booster and GS Engineering
Assuming the 90 days trading horizon Booster Co is expected to generate 0.44 times more return on investment than GS Engineering. However, Booster Co is 2.29 times less risky than GS Engineering. It trades about 0.09 of its potential returns per unit of risk. GS Engineering Construction is currently generating about 0.02 per unit of risk. If you would invest 338,000 in Booster Co on November 3, 2024 and sell it today you would earn a total of 42,000 from holding Booster Co or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Booster Co vs. GS Engineering Construction
Performance |
| Timeline |
| Booster |
| GS Engineering Const |
Booster and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Booster and GS Engineering
The main advantage of trading using opposite Booster and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booster position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| Booster vs. Rainbow Robotics | Booster vs. COWINTECH Co | Booster vs. CS BEARING CoLtd | Booster vs. Young Poong Precision |
| GS Engineering vs. Nh Investment And | GS Engineering vs. InnoTherapy | GS Engineering vs. LG Household Healthcare | GS Engineering vs. BGF Retail 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |