Correlation Between Asiana Airlines and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Cuckoo Homesys 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 Asiana Airlines and Cuckoo Homesys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Cuckoo Homesys Co, you can compare the effects of market volatilities on Asiana Airlines and Cuckoo Homesys 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 Asiana Airlines with a short position of Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Cuckoo Homesys.
Diversification Opportunities for Asiana Airlines and Cuckoo Homesys
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiana and Cuckoo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Asiana Airlines and Cuckoo Homesys
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 2.04 times less return on investment than Cuckoo Homesys. In addition to that, Asiana Airlines is 1.24 times more volatile than Cuckoo Homesys Co. It trades about 0.13 of its total potential returns per unit of risk. Cuckoo Homesys Co is currently generating about 0.32 per unit of volatility. If you would invest 1,931,000 in Cuckoo Homesys Co on November 28, 2024 and sell it today you would earn a total of 134,000 from holding Cuckoo Homesys Co or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Cuckoo Homesys Co
Performance |
| Timeline |
| Asiana Airlines |
| Cuckoo Homesys |
Asiana Airlines and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Cuckoo Homesys
The main advantage of trading using opposite Asiana Airlines and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| Asiana Airlines vs. BNK Financial Group | Asiana Airlines vs. Samsung Electronics Co | Asiana Airlines vs. Settlebank | Asiana Airlines vs. Daejoo Electronic Materials |
| Cuckoo Homesys vs. Iljin Display | Cuckoo Homesys vs. Digital Imaging Technology | Cuckoo Homesys vs. Cots Technology Co | Cuckoo Homesys vs. AeroSpace Technology of |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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