Correlation Between Busan Industrial and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both Busan Industrial and Ewon Comfortech 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 Ewon Comfortech 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 Ewon Comfortech Co, you can compare the effects of market volatilities on Busan Industrial and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Industrial and Ewon Comfortech.
Diversification Opportunities for Busan Industrial and Ewon Comfortech
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Busan and Ewon is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Busan Industrial Co and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of Busan Industrial i.e., Busan Industrial and Ewon Comfortech go up and down completely randomly.
Pair Corralation between Busan Industrial and Ewon Comfortech
Assuming the 90 days trading horizon Busan Industrial Co is expected to generate 2.79 times more return on investment than Ewon Comfortech. However, Busan Industrial is 2.79 times more volatile than Ewon Comfortech Co. It trades about 0.18 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.29 per unit of risk. If you would invest 5,010,000 in Busan Industrial Co on August 30, 2024 and sell it today you would earn a total of 2,370,000 from holding Busan Industrial Co or generate 47.31% 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. Ewon Comfortech Co
Performance |
| Timeline |
| Busan Industrial |
| Ewon Comfortech |
Busan Industrial and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Industrial and Ewon Comfortech
The main advantage of trading using opposite Busan Industrial and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Industrial position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| Busan Industrial vs. AptaBio Therapeutics | Busan Industrial vs. Daewoo SBI SPAC | Busan Industrial vs. Dream Security co | Busan Industrial vs. Microfriend |
| Ewon Comfortech vs. KMH Hitech Co | Ewon Comfortech vs. GemVaxKAEL CoLtd | Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |