Correlation Between Stic Investments and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Stic Investments and CS BEARING 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 Stic Investments and CS BEARING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and CS BEARING CoLtd, you can compare the effects of market volatilities on Stic Investments and CS BEARING 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 Stic Investments with a short position of CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and CS BEARING.
Diversification Opportunities for Stic Investments and CS BEARING
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stic and 297090 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd and Stic Investments 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 Stic Investments are associated (or correlated) with CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Stic Investments i.e., Stic Investments and CS BEARING go up and down completely randomly.
Pair Corralation between Stic Investments and CS BEARING
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.58 times more return on investment than CS BEARING. However, Stic Investments is 1.71 times less risky than CS BEARING. It trades about 0.02 of its potential returns per unit of risk. CS BEARING CoLtd is currently generating about -0.26 per unit of risk. If you would invest 796,000 in Stic Investments on August 28, 2024 and sell it today you would earn a total of 4,000 from holding Stic Investments or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. CS BEARING CoLtd
Performance |
| Timeline |
| Stic Investments |
| CS BEARING CoLtd |
Stic Investments and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and CS BEARING
The main advantage of trading using opposite Stic Investments and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING's long position.| Stic Investments vs. Korea Real Estate | Stic Investments vs. Korea Ratings Co | Stic Investments vs. IQuest Co | Stic Investments vs. Wonbang Tech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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