Correlation Between Ilji Technology and Cho Bi
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Cho Bi 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 Ilji Technology and Cho Bi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Cho Bi Co, you can compare the effects of market volatilities on Ilji Technology and Cho Bi 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 Ilji Technology with a short position of Cho Bi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Cho Bi.
Diversification Opportunities for Ilji Technology and Cho Bi
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ilji and Cho is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Cho Bi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Bi and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Cho Bi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Bi has no effect on the direction of Ilji Technology i.e., Ilji Technology and Cho Bi go up and down completely randomly.
Pair Corralation between Ilji Technology and Cho Bi
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 1.97 times more return on investment than Cho Bi. However, Ilji Technology is 1.97 times more volatile than Cho Bi Co. It trades about 0.1 of its potential returns per unit of risk. Cho Bi Co is currently generating about -0.22 per unit of risk. If you would invest 403,000 in Ilji Technology Co on November 28, 2024 and sell it today you would earn a total of 17,000 from holding Ilji Technology Co or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Ilji Technology Co vs. Cho Bi Co
Performance |
| Timeline |
| Ilji Technology |
| Cho Bi |
Ilji Technology and Cho Bi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Cho Bi
The main advantage of trading using opposite Ilji Technology and Cho Bi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Cho Bi 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 Cho Bi will offset losses from the drop in Cho Bi's long position.| Ilji Technology vs. Fine Besteel Co | Ilji Technology vs. Samhyun Steel Co | Ilji Technology vs. Dongbang Transport Logistics | Ilji Technology vs. Finebesteel |
| Cho Bi vs. Pureun Mutual Savings | Cho Bi vs. Korea Air Svc | Cho Bi vs. Sempio Foods Co | Cho Bi vs. InfoBank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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