Correlation Between SCI Information and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both SCI Information and Ewon Comfortech 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 SCI Information and Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCI Information Service and Ewon Comfortech Co, you can compare the effects of market volatilities on SCI Information and Ewon Comfortech 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 SCI Information with a short position of Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCI Information and Ewon Comfortech.
Diversification Opportunities for SCI Information and Ewon Comfortech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCI and Ewon is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SCI Information Service and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech and SCI Information 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 SCI Information Service are associated (or correlated) with Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of SCI Information i.e., SCI Information and Ewon Comfortech go up and down completely randomly.
Pair Corralation between SCI Information and Ewon Comfortech
Assuming the 90 days trading horizon SCI Information Service is expected to generate 0.51 times more return on investment than Ewon Comfortech. However, SCI Information Service is 1.94 times less risky than Ewon Comfortech. It trades about -0.04 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.07 per unit of risk. If you would invest 418,039 in SCI Information Service on December 1, 2024 and sell it today you would lose (193,539) from holding SCI Information Service or give up 46.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCI Information Service vs. Ewon Comfortech Co
Performance |
| Timeline |
| SCI Information Service |
| Ewon Comfortech |
SCI Information and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCI Information and Ewon Comfortech
The main advantage of trading using opposite SCI Information and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCI Information position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| SCI Information vs. System and Application | SCI Information vs. Kyeryong Construction Industrial | SCI Information vs. NICE Information Service | SCI Information vs. Daishin Information Communications |
| Ewon Comfortech vs. Samyang Foods Co | Ewon Comfortech vs. Hanmi Semiconductor Co | Ewon Comfortech vs. Sempio Foods Co | Ewon Comfortech vs. Samlip General Foods |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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