Correlation Between Oriental Precision and Finebesteel
Can any of the company-specific risk be diversified away by investing in both Oriental Precision and Finebesteel 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 Oriental Precision and Finebesteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Precision Engineering and Finebesteel, you can compare the effects of market volatilities on Oriental Precision and Finebesteel 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 Oriental Precision with a short position of Finebesteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Precision and Finebesteel.
Diversification Opportunities for Oriental Precision and Finebesteel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oriental and Finebesteel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Precision Engineering and Finebesteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finebesteel and Oriental Precision 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 Oriental Precision Engineering are associated (or correlated) with Finebesteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finebesteel has no effect on the direction of Oriental Precision i.e., Oriental Precision and Finebesteel go up and down completely randomly.
Pair Corralation between Oriental Precision and Finebesteel
If you would invest 0.00 in Oriental Precision Engineering on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Oriental Precision Engineering or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
Oriental Precision Engineering vs. Finebesteel
Performance |
| Timeline |
| Oriental Precision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Finebesteel |
Oriental Precision and Finebesteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Precision and Finebesteel
The main advantage of trading using opposite Oriental Precision and Finebesteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Precision position performs unexpectedly, Finebesteel 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 Finebesteel will offset losses from the drop in Finebesteel's long position.| Oriental Precision vs. ADTechnology CoLtd | Oriental Precision vs. Ewon Comfortech Co | Oriental Precision vs. Woori Technology | Oriental Precision vs. Daishin Information Communications |
| Finebesteel vs. SM Entertainment Co | Finebesteel vs. SKONEC Entertainment Co | Finebesteel vs. SK Chemicals Co | Finebesteel vs. Hotel Shilla Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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