Correlation Between Busan Ind and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Busan Ind and Inzi Display 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 Busan Ind and Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Ind and Inzi Display CoLtd, you can compare the effects of market volatilities on Busan Ind and Inzi Display 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 Busan Ind with a short position of Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Ind and Inzi Display.
Diversification Opportunities for Busan Ind and Inzi Display
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Busan and Inzi is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Busan Ind and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd and Busan Ind 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 Busan Ind are associated (or correlated) with Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Busan Ind i.e., Busan Ind and Inzi Display go up and down completely randomly.
Pair Corralation between Busan Ind and Inzi Display
Assuming the 90 days trading horizon Busan Ind is expected to generate 3.94 times more return on investment than Inzi Display. However, Busan Ind is 3.94 times more volatile than Inzi Display CoLtd. It trades about 0.08 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.35 per unit of risk. If you would invest 5,280,000 in Busan Ind on August 29, 2024 and sell it today you would earn a total of 400,000 from holding Busan Ind or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Busan Ind vs. Inzi Display CoLtd
Performance |
| Timeline |
| Busan Ind |
| Inzi Display CoLtd |
Busan Ind and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Ind and Inzi Display
The main advantage of trading using opposite Busan Ind and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Ind position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Busan Ind vs. PJ Metal Co | Busan Ind vs. Lotte Chilsung Beverage | Busan Ind vs. Sempio Foods Co | Busan Ind vs. Korean Reinsurance Co |
| Inzi Display vs. Daou Data Corp | Inzi Display vs. Busan Industrial Co | Inzi Display vs. Busan Ind | Inzi Display vs. Shinhan WTI Futures |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |