Correlation Between BooKook Steel and Assems
Can any of the company-specific risk be diversified away by investing in both BooKook Steel and Assems 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 Assems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BooKook Steel Co and Assems Inc, you can compare the effects of market volatilities on BooKook Steel and Assems 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 Assems. Check out your portfolio center. Please also check ongoing floating volatility patterns of BooKook Steel and Assems.
Diversification Opportunities for BooKook Steel and Assems
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BooKook and Assems is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BooKook Steel Co and Assems Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assems Inc 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 Co are associated (or correlated) with Assems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assems Inc has no effect on the direction of BooKook Steel i.e., BooKook Steel and Assems go up and down completely randomly.
Pair Corralation between BooKook Steel and Assems
Assuming the 90 days trading horizon BooKook Steel Co is expected to under-perform the Assems. But the stock apears to be less risky and, when comparing its historical volatility, BooKook Steel Co is 1.43 times less risky than Assems. The stock trades about -0.07 of its potential returns per unit of risk. The Assems Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 694,000 in Assems Inc on September 2, 2024 and sell it today you would lose (14,000) from holding Assems Inc or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BooKook Steel Co vs. Assems Inc
Performance |
| Timeline |
| BooKook Steel |
| Assems Inc |
BooKook Steel and Assems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BooKook Steel and Assems
The main advantage of trading using opposite BooKook Steel and Assems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BooKook Steel position performs unexpectedly, Assems 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 Assems will offset losses from the drop in Assems' long position.| BooKook Steel vs. AptaBio Therapeutics | BooKook Steel vs. Daewoo SBI SPAC | BooKook Steel vs. Dream Security co | BooKook Steel vs. Microfriend |
| Assems vs. Samsung Electronics Co | Assems vs. Samsung Electronics Co | Assems vs. LG Energy Solution | Assems vs. SK Hynix |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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