Correlation Between ES Ceramics and Pantech Group
Can any of the company-specific risk be diversified away by investing in both ES Ceramics and Pantech Group 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 ES Ceramics and Pantech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ES Ceramics Technology and Pantech Group Holdings, you can compare the effects of market volatilities on ES Ceramics and Pantech Group 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 ES Ceramics with a short position of Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ES Ceramics and Pantech Group.
Diversification Opportunities for ES Ceramics and Pantech Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0100 and Pantech is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ES Ceramics Technology and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings and ES Ceramics 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 ES Ceramics Technology are associated (or correlated) with Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of ES Ceramics i.e., ES Ceramics and Pantech Group go up and down completely randomly.
Pair Corralation between ES Ceramics and Pantech Group
Assuming the 90 days trading horizon ES Ceramics Technology is expected to under-perform the Pantech Group. In addition to that, ES Ceramics is 2.37 times more volatile than Pantech Group Holdings. It trades about 0.0 of its total potential returns per unit of risk. Pantech Group Holdings is currently generating about 0.04 per unit of volatility. If you would invest 76.00 in Pantech Group Holdings on August 27, 2024 and sell it today you would earn a total of 20.00 from holding Pantech Group Holdings or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ES Ceramics Technology vs. Pantech Group Holdings
Performance |
| Timeline |
| ES Ceramics Technology |
| Pantech Group Holdings |
ES Ceramics and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ES Ceramics and Pantech Group
The main advantage of trading using opposite ES Ceramics and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ES Ceramics position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| ES Ceramics vs. Digistar Bhd | ES Ceramics vs. Minetech Resources Bhd | ES Ceramics vs. OpenSys M Bhd | ES Ceramics vs. Insas Bhd |
| Pantech Group vs. Eonmetall Group Bhd | Pantech Group vs. Press Metal Bhd | Pantech Group vs. Sungei Bagan Rubber | Pantech Group vs. Petronas Chemicals Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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