Correlation Between BIT Computer and Bosung Power
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Bosung Power 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 Bosung Power 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 Bosung Power Technology, you can compare the effects of market volatilities on BIT Computer and Bosung Power 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 Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Bosung Power.
Diversification Opportunities for BIT Computer and Bosung Power
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BIT and Bosung is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology 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 Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of BIT Computer i.e., BIT Computer and Bosung Power go up and down completely randomly.
Pair Corralation between BIT Computer and Bosung Power
Assuming the 90 days trading horizon BIT Computer is expected to generate 1.11 times less return on investment than Bosung Power. But when comparing it to its historical volatility, BIT Computer Co is 1.12 times less risky than Bosung Power. It trades about 0.14 of its potential returns per unit of risk. Bosung Power Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 250,500 in Bosung Power Technology on October 12, 2024 and sell it today you would earn a total of 12,000 from holding Bosung Power Technology or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Bosung Power Technology
Performance |
| Timeline |
| BIT Computer |
| Bosung Power Technology |
BIT Computer and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Bosung Power
The main advantage of trading using opposite BIT Computer and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| BIT Computer vs. SeAH Besteel Corp | BIT Computer vs. Koryo Credit Information | BIT Computer vs. Han Kook Steel | BIT Computer vs. Samhyun Steel Co |
| Bosung Power vs. BIT Computer Co | Bosung Power vs. Polaris Office Corp | Bosung Power vs. Digital Power Communications | Bosung Power vs. Nable Communications |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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