Correlation Between Bookook Steel and GeneBioTech
Can any of the company-specific risk be diversified away by investing in both Bookook Steel and GeneBioTech 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 GeneBioTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bookook Steel and GeneBioTech Co, you can compare the effects of market volatilities on Bookook Steel and GeneBioTech 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 GeneBioTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bookook Steel and GeneBioTech.
Diversification Opportunities for Bookook Steel and GeneBioTech
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bookook and GeneBioTech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bookook Steel and GeneBioTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneBioTech 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 GeneBioTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneBioTech has no effect on the direction of Bookook Steel i.e., Bookook Steel and GeneBioTech go up and down completely randomly.
Pair Corralation between Bookook Steel and GeneBioTech
Assuming the 90 days trading horizon Bookook Steel is expected to generate 1.13 times more return on investment than GeneBioTech. However, Bookook Steel is 1.13 times more volatile than GeneBioTech Co. It trades about 0.07 of its potential returns per unit of risk. GeneBioTech Co is currently generating about -0.09 per unit of risk. If you would invest 241,000 in Bookook Steel on September 23, 2024 and sell it today you would earn a total of 8,000 from holding Bookook Steel or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bookook Steel vs. GeneBioTech Co
Performance |
| Timeline |
| Bookook Steel |
| GeneBioTech |
Bookook Steel and GeneBioTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bookook Steel and GeneBioTech
The main advantage of trading using opposite Bookook Steel and GeneBioTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bookook Steel position performs unexpectedly, GeneBioTech 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 GeneBioTech will offset losses from the drop in GeneBioTech's long position.| Bookook Steel vs. Dong Il Steel | Bookook Steel vs. Seah Steel Corp | Bookook Steel vs. Ajusteel Co | Bookook Steel vs. Ni Steel |
| GeneBioTech vs. Bookook Steel | GeneBioTech vs. Koryo Credit Information | GeneBioTech vs. Moadata Co | GeneBioTech vs. Jeong Moon Information |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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