Correlation Between Seoyon Topmetal and Cosmax Nbt
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal and Cosmax Nbt 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 Seoyon Topmetal and Cosmax Nbt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Cosmax Nbt, you can compare the effects of market volatilities on Seoyon Topmetal and Cosmax Nbt 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 Seoyon Topmetal with a short position of Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Cosmax Nbt.
Diversification Opportunities for Seoyon Topmetal and Cosmax Nbt
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seoyon and Cosmax is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal Co and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt and Seoyon Topmetal 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 Seoyon Topmetal Co are associated (or correlated) with Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of Seoyon Topmetal i.e., Seoyon Topmetal and Cosmax Nbt go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Cosmax Nbt
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to generate 0.77 times more return on investment than Cosmax Nbt. However, Seoyon Topmetal Co is 1.3 times less risky than Cosmax Nbt. It trades about -0.01 of its potential returns per unit of risk. Cosmax Nbt is currently generating about -0.01 per unit of risk. If you would invest 446,378 in Seoyon Topmetal Co on August 30, 2024 and sell it today you would lose (74,878) from holding Seoyon Topmetal Co or give up 16.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Cosmax Nbt
Performance |
| Timeline |
| Seoyon Topmetal |
| Cosmax Nbt |
Seoyon Topmetal and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Cosmax Nbt
The main advantage of trading using opposite Seoyon Topmetal and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal position performs unexpectedly, Cosmax Nbt 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 Cosmax Nbt will offset losses from the drop in Cosmax Nbt's long position.| Seoyon Topmetal vs. KMH Hitech Co | Seoyon Topmetal vs. GemVaxKAEL CoLtd | Seoyon Topmetal vs. Busan Industrial Co | Seoyon Topmetal vs. Busan Ind |
| Cosmax Nbt vs. Samsung Electronics Co | Cosmax Nbt vs. Samsung Electronics Co | Cosmax Nbt vs. Hyundai Motor Co | Cosmax Nbt vs. Hyundai Motor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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