Correlation Between UNISEM and Busan Industrial
Can any of the company-specific risk be diversified away by investing in both UNISEM and Busan Industrial 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 UNISEM and Busan Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and Busan Industrial Co, you can compare the effects of market volatilities on UNISEM and Busan Industrial 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 UNISEM with a short position of Busan Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Busan Industrial.
Diversification Opportunities for UNISEM and Busan Industrial
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNISEM and Busan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and Busan Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Industrial and UNISEM 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 UNISEM Co are associated (or correlated) with Busan Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Industrial has no effect on the direction of UNISEM i.e., UNISEM and Busan Industrial go up and down completely randomly.
Pair Corralation between UNISEM and Busan Industrial
Assuming the 90 days trading horizon UNISEM Co is expected to generate 1.41 times more return on investment than Busan Industrial. However, UNISEM is 1.41 times more volatile than Busan Industrial Co. It trades about 0.01 of its potential returns per unit of risk. Busan Industrial Co is currently generating about -0.03 per unit of risk. If you would invest 643,994 in UNISEM Co on August 27, 2024 and sell it today you would lose (54,994) from holding UNISEM Co or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. Busan Industrial Co
Performance |
| Timeline |
| UNISEM |
| Busan Industrial |
UNISEM and Busan Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and Busan Industrial
The main advantage of trading using opposite UNISEM and Busan Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, Busan Industrial 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 Busan Industrial will offset losses from the drop in Busan Industrial's long position.| UNISEM vs. Korea Real Estate | UNISEM vs. Korea Ratings Co | UNISEM vs. IQuest Co | UNISEM vs. Wonbang Tech Co |
| Busan Industrial vs. AptaBio Therapeutics | Busan Industrial vs. Daewoo SBI SPAC | Busan Industrial vs. Dream Security co | Busan Industrial vs. Microfriend |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |