Correlation Between Q Capital and Aju IB
Can any of the company-specific risk be diversified away by investing in both Q Capital and Aju IB 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 Q Capital and Aju IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q Capital Partners and Aju IB Investment, you can compare the effects of market volatilities on Q Capital and Aju IB 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 Q Capital with a short position of Aju IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q Capital and Aju IB.
Diversification Opportunities for Q Capital and Aju IB
Very good diversification
The 3 months correlation between 016600 and Aju is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Q Capital Partners and Aju IB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aju IB Investment and Q Capital 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 Q Capital Partners are associated (or correlated) with Aju IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aju IB Investment has no effect on the direction of Q Capital i.e., Q Capital and Aju IB go up and down completely randomly.
Pair Corralation between Q Capital and Aju IB
Assuming the 90 days trading horizon Q Capital Partners is expected to generate 0.84 times more return on investment than Aju IB. However, Q Capital Partners is 1.2 times less risky than Aju IB. It trades about 0.03 of its potential returns per unit of risk. Aju IB Investment is currently generating about -0.02 per unit of risk. If you would invest 27,200 in Q Capital Partners on October 23, 2024 and sell it today you would earn a total of 400.00 from holding Q Capital Partners or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Q Capital Partners vs. Aju IB Investment
Performance |
| Timeline |
| Q Capital Partners |
| Aju IB Investment |
Q Capital and Aju IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q Capital and Aju IB
The main advantage of trading using opposite Q Capital and Aju IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q Capital position performs unexpectedly, Aju IB 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 Aju IB will offset losses from the drop in Aju IB's long position.| Q Capital vs. EV Advanced Material | Q Capital vs. Shinhan Inverse Copper | Q Capital vs. MetaLabs Co | Q Capital vs. RF Materials Co |
| Aju IB vs. Atinum Investment Co | Aju IB vs. SBI Investment KOREA | Aju IB vs. Daesung Private Equity | Aju IB vs. Busan Industrial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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