Correlation Between Osang Healthcare and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Osang Healthcare and Anam Electronics 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 Osang Healthcare and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osang Healthcare Co,Ltd and Anam Electronics Co, you can compare the effects of market volatilities on Osang Healthcare and Anam Electronics 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 Osang Healthcare with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osang Healthcare and Anam Electronics.
Diversification Opportunities for Osang Healthcare and Anam Electronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Osang and Anam is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Osang Healthcare Co,Ltd and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Osang Healthcare 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 Osang Healthcare Co,Ltd are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Osang Healthcare i.e., Osang Healthcare and Anam Electronics go up and down completely randomly.
Pair Corralation between Osang Healthcare and Anam Electronics
Assuming the 90 days trading horizon Osang Healthcare Co,Ltd is expected to under-perform the Anam Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Osang Healthcare Co,Ltd is 1.0 times less risky than Anam Electronics. The stock trades about -0.19 of its potential returns per unit of risk. The Anam Electronics Co is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 127,800 in Anam Electronics Co on August 29, 2024 and sell it today you would lose (7,200) from holding Anam Electronics Co or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osang Healthcare Co,Ltd vs. Anam Electronics Co
Performance |
| Timeline |
| Osang Healthcare Co,Ltd |
| Anam Electronics |
Osang Healthcare and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osang Healthcare and Anam Electronics
The main advantage of trading using opposite Osang Healthcare and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osang Healthcare position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Osang Healthcare vs. Coloray International Investment | Osang Healthcare vs. Hanwha InvestmentSecurities Co | Osang Healthcare vs. Dongil Metal Co | Osang Healthcare vs. Stic Investments |
| Anam Electronics vs. Osang Healthcare Co,Ltd | Anam Electronics vs. Pureun Mutual Savings | Anam Electronics vs. Incar Financial Service | Anam Electronics vs. DB Financial Investment |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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