Correlation Between BIT Computer and Korea Air
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Korea Air 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 BIT Computer and Korea Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Korea Air Svc, you can compare the effects of market volatilities on BIT Computer and Korea Air 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 BIT Computer with a short position of Korea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Korea Air.
Diversification Opportunities for BIT Computer and Korea Air
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIT and Korea is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Korea Air Svc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Air Svc and BIT Computer 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 BIT Computer Co are associated (or correlated) with Korea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Air Svc has no effect on the direction of BIT Computer i.e., BIT Computer and Korea Air go up and down completely randomly.
Pair Corralation between BIT Computer and Korea Air
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 0.74 times more return on investment than Korea Air. However, BIT Computer Co is 1.35 times less risky than Korea Air. It trades about 0.0 of its potential returns per unit of risk. Korea Air Svc is currently generating about -0.14 per unit of risk. If you would invest 496,611 in BIT Computer Co on October 23, 2024 and sell it today you would lose (611.00) from holding BIT Computer Co or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Korea Air Svc
Performance |
| Timeline |
| BIT Computer |
| Korea Air Svc |
BIT Computer and Korea Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Korea Air
The main advantage of trading using opposite BIT Computer and Korea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Korea Air 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 Korea Air will offset losses from the drop in Korea Air's long position.| BIT Computer vs. Leaders Technology Investment | BIT Computer vs. Han Kook Steel | BIT Computer vs. Nature and Environment | BIT Computer vs. Fine Besteel Co |
| Korea Air vs. Hanjin Transportation Co | Korea Air vs. AeroSpace Technology of | Korea Air vs. Daewon Media Co | Korea Air vs. SKONEC Entertainment 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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