Correlation Between Busan Industrial and SHINWON STRUCTION
Can any of the company-specific risk be diversified away by investing in both Busan Industrial and SHINWON STRUCTION 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 Industrial and SHINWON STRUCTION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Industrial Co and SHINWON STRUCTION COMPANY, you can compare the effects of market volatilities on Busan Industrial and SHINWON STRUCTION 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 Industrial with a short position of SHINWON STRUCTION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Industrial and SHINWON STRUCTION.
Diversification Opportunities for Busan Industrial and SHINWON STRUCTION
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Busan and SHINWON is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Busan Industrial Co and SHINWON STRUCTION COMPANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHINWON STRUCTION PANY and Busan Industrial 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 Industrial Co are associated (or correlated) with SHINWON STRUCTION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHINWON STRUCTION PANY has no effect on the direction of Busan Industrial i.e., Busan Industrial and SHINWON STRUCTION go up and down completely randomly.
Pair Corralation between Busan Industrial and SHINWON STRUCTION
Assuming the 90 days trading horizon Busan Industrial Co is expected to generate 0.93 times more return on investment than SHINWON STRUCTION. However, Busan Industrial Co is 1.08 times less risky than SHINWON STRUCTION. It trades about 0.03 of its potential returns per unit of risk. SHINWON STRUCTION COMPANY is currently generating about 0.0 per unit of risk. If you would invest 6,254,960 in Busan Industrial Co on September 12, 2024 and sell it today you would earn a total of 965,040 from holding Busan Industrial Co or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Busan Industrial Co vs. SHINWON STRUCTION COMPANY
Performance |
| Timeline |
| Busan Industrial |
| SHINWON STRUCTION PANY |
Busan Industrial and SHINWON STRUCTION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Industrial and SHINWON STRUCTION
The main advantage of trading using opposite Busan Industrial and SHINWON STRUCTION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Industrial position performs unexpectedly, SHINWON STRUCTION 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 SHINWON STRUCTION will offset losses from the drop in SHINWON STRUCTION's long position.| Busan Industrial vs. Samsung Electronics Co | Busan Industrial vs. Samsung Electronics Co | Busan Industrial vs. SK Hynix | Busan Industrial vs. POSCO Holdings |
| SHINWON STRUCTION vs. Korea New Network | SHINWON STRUCTION vs. Solution Advanced Technology | SHINWON STRUCTION vs. Busan Industrial Co | SHINWON STRUCTION vs. Busan Ind |
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.
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