Correlation Between Bookook Steel and BooKook Steel
Can any of the company-specific risk be diversified away by investing in both Bookook Steel and BooKook Steel 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 Bookook Steel and BooKook Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bookook Steel and BooKook Steel Co, you can compare the effects of market volatilities on Bookook Steel and BooKook Steel 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 Bookook Steel with a short position of BooKook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bookook Steel and BooKook Steel.
Diversification Opportunities for Bookook Steel and BooKook Steel
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bookook and BooKook is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bookook Steel and BooKook Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BooKook Steel and Bookook Steel 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 Bookook Steel are associated (or correlated) with BooKook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BooKook Steel has no effect on the direction of Bookook Steel i.e., Bookook Steel and BooKook Steel go up and down completely randomly.
Pair Corralation between Bookook Steel and BooKook Steel
Assuming the 90 days trading horizon Bookook Steel is expected to under-perform the BooKook Steel. In addition to that, Bookook Steel is 1.0 times more volatile than BooKook Steel Co. It trades about -0.01 of its total potential returns per unit of risk. BooKook Steel Co is currently generating about -0.01 per unit of volatility. If you would invest 341,608 in BooKook Steel Co on November 2, 2024 and sell it today you would lose (89,108) from holding BooKook Steel Co or give up 26.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bookook Steel vs. BooKook Steel Co
Performance |
| Timeline |
| Bookook Steel |
| BooKook Steel |
Bookook Steel and BooKook Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bookook Steel and BooKook Steel
The main advantage of trading using opposite Bookook Steel and BooKook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bookook Steel position performs unexpectedly, BooKook Steel 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 BooKook Steel will offset losses from the drop in BooKook Steel's long position.| Bookook Steel vs. WONIK Materials CoLtd | Bookook Steel vs. EV Advanced Material | Bookook Steel vs. Hana Materials | Bookook Steel vs. Daejoo Electronic Materials |
| BooKook Steel vs. KT Submarine Telecom | BooKook Steel vs. Kisan Telecom Co | BooKook Steel vs. Korea Information Communications | BooKook Steel vs. Hanmi Semiconductor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |