Correlation Between Busan Industrial and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Busan Industrial and Intellian Technologies 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 Intellian Technologies 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 Intellian Technologies, you can compare the effects of market volatilities on Busan Industrial and Intellian Technologies 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 Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Industrial and Intellian Technologies.
Diversification Opportunities for Busan Industrial and Intellian Technologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Busan and Intellian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Busan Industrial Co and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies 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 Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Busan Industrial i.e., Busan Industrial and Intellian Technologies go up and down completely randomly.
Pair Corralation between Busan Industrial and Intellian Technologies
Assuming the 90 days trading horizon Busan Industrial Co is expected to generate 1.13 times more return on investment than Intellian Technologies. However, Busan Industrial is 1.13 times more volatile than Intellian Technologies. It trades about 0.02 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.07 per unit of risk. If you would invest 6,095,598 in Busan Industrial Co on September 1, 2024 and sell it today you would earn a total of 44,402 from holding Busan Industrial Co or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Busan Industrial Co vs. Intellian Technologies
Performance |
| Timeline |
| Busan Industrial |
| Intellian Technologies |
Busan Industrial and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Industrial and Intellian Technologies
The main advantage of trading using opposite Busan Industrial and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Industrial position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Busan Industrial vs. AptaBio Therapeutics | Busan Industrial vs. Daewoo SBI SPAC | Busan Industrial vs. Dream Security co | Busan Industrial vs. Microfriend |
| Intellian Technologies vs. Digital Power Communications | Intellian Technologies vs. Daelim Trading Co | Intellian Technologies vs. DSC Investment | Intellian Technologies vs. Coloray International Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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