Correlation Between Bookook Steel and Genie Music
Can any of the company-specific risk be diversified away by investing in both Bookook Steel and Genie Music 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 Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bookook Steel and Genie Music, you can compare the effects of market volatilities on Bookook Steel and Genie Music 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 Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bookook Steel and Genie Music.
Diversification Opportunities for Bookook Steel and Genie Music
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bookook and Genie is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bookook Steel and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music 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 Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Bookook Steel i.e., Bookook Steel and Genie Music go up and down completely randomly.
Pair Corralation between Bookook Steel and Genie Music
Assuming the 90 days trading horizon Bookook Steel is expected to generate 1.03 times more return on investment than Genie Music. However, Bookook Steel is 1.03 times more volatile than Genie Music. It trades about -0.01 of its potential returns per unit of risk. Genie Music is currently generating about -0.04 per unit of risk. If you would invest 358,500 in Bookook Steel on November 2, 2024 and sell it today you would lose (106,000) from holding Bookook Steel or give up 29.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bookook Steel vs. Genie Music
Performance |
| Timeline |
| Bookook Steel |
| Genie Music |
Bookook Steel and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bookook Steel and Genie Music
The main advantage of trading using opposite Bookook Steel and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bookook Steel position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music'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 |
| Genie Music vs. Kolon Plastics | Genie Music vs. National Plastic Co | Genie Music vs. Homecast CoLtd | Genie Music vs. Ssangyong Information Communication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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