Correlation Between Lee Ku and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Lee Ku and Eugene Technology 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 Lee Ku and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lee Ku Industrial and Eugene Technology CoLtd, you can compare the effects of market volatilities on Lee Ku and Eugene Technology 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 Lee Ku with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lee Ku and Eugene Technology.
Diversification Opportunities for Lee Ku and Eugene Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lee and Eugene is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lee Ku Industrial and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and Lee Ku 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 Lee Ku Industrial are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Lee Ku i.e., Lee Ku and Eugene Technology go up and down completely randomly.
Pair Corralation between Lee Ku and Eugene Technology
Assuming the 90 days trading horizon Lee Ku Industrial is expected to under-perform the Eugene Technology. But the stock apears to be less risky and, when comparing its historical volatility, Lee Ku Industrial is 1.13 times less risky than Eugene Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Eugene Technology CoLtd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,575,000 in Eugene Technology CoLtd on October 30, 2024 and sell it today you would earn a total of 380,000 from holding Eugene Technology CoLtd or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lee Ku Industrial vs. Eugene Technology CoLtd
Performance |
| Timeline |
| Lee Ku Industrial |
| Eugene Technology CoLtd |
Lee Ku and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lee Ku and Eugene Technology
The main advantage of trading using opposite Lee Ku and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Ku position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| Lee Ku vs. Vitzro Tech Co | Lee Ku vs. FNSTech Co | Lee Ku vs. KPX Green Chemical | Lee Ku vs. Daejung Chemicals Metals |
| Eugene Technology vs. Hotel Shilla Co | Eugene Technology vs. ENF Technology Co | Eugene Technology vs. Mobile Appliance | Eugene Technology vs. Woori Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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