Correlation Between Korea Alcohol and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Korea Alcohol and BIT Computer 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 Korea Alcohol and BIT Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Alcohol Industrial and BIT Computer Co, you can compare the effects of market volatilities on Korea Alcohol and BIT Computer 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 Korea Alcohol with a short position of BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Alcohol and BIT Computer.
Diversification Opportunities for Korea Alcohol and BIT Computer
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korea and BIT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Korea Alcohol Industrial and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer and Korea Alcohol 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 Korea Alcohol Industrial are associated (or correlated) with BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Korea Alcohol i.e., Korea Alcohol and BIT Computer go up and down completely randomly.
Pair Corralation between Korea Alcohol and BIT Computer
Assuming the 90 days trading horizon Korea Alcohol Industrial is expected to generate 0.66 times more return on investment than BIT Computer. However, Korea Alcohol Industrial is 1.51 times less risky than BIT Computer. It trades about 0.07 of its potential returns per unit of risk. BIT Computer Co is currently generating about 0.0 per unit of risk. If you would invest 829,786 in Korea Alcohol Industrial on October 30, 2024 and sell it today you would earn a total of 30,214 from holding Korea Alcohol Industrial or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Alcohol Industrial vs. BIT Computer Co
Performance |
| Timeline |
| Korea Alcohol Industrial |
| BIT Computer |
Korea Alcohol and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Alcohol and BIT Computer
The main advantage of trading using opposite Korea Alcohol and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Alcohol position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Korea Alcohol vs. SAMG Entertainment Co | Korea Alcohol vs. Shinil Industrial Co | Korea Alcohol vs. T3 Entertainment Co | Korea Alcohol vs. Nasmedia Co |
| BIT Computer vs. Alton Sports CoLtd | BIT Computer vs. Korea Shipbuilding Offshore | BIT Computer vs. Green Cross Medical | BIT Computer vs. MetaLabs 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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