Correlation Between InBody CoLtd and Chorokbaem Healthcare
Can any of the company-specific risk be diversified away by investing in both InBody CoLtd and Chorokbaem Healthcare 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 InBody CoLtd and Chorokbaem Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InBody CoLtd and Chorokbaem Healthcare Co, you can compare the effects of market volatilities on InBody CoLtd and Chorokbaem Healthcare 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 InBody CoLtd with a short position of Chorokbaem Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of InBody CoLtd and Chorokbaem Healthcare.
Diversification Opportunities for InBody CoLtd and Chorokbaem Healthcare
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between InBody and Chorokbaem is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding InBody CoLtd and Chorokbaem Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chorokbaem Healthcare and InBody CoLtd 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 InBody CoLtd are associated (or correlated) with Chorokbaem Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chorokbaem Healthcare has no effect on the direction of InBody CoLtd i.e., InBody CoLtd and Chorokbaem Healthcare go up and down completely randomly.
Pair Corralation between InBody CoLtd and Chorokbaem Healthcare
Assuming the 90 days trading horizon InBody CoLtd is expected to generate 2.21 times less return on investment than Chorokbaem Healthcare. But when comparing it to its historical volatility, InBody CoLtd is 2.38 times less risky than Chorokbaem Healthcare. It trades about 0.15 of its potential returns per unit of risk. Chorokbaem Healthcare Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 29,000 in Chorokbaem Healthcare Co on November 5, 2024 and sell it today you would earn a total of 2,700 from holding Chorokbaem Healthcare Co or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InBody CoLtd vs. Chorokbaem Healthcare Co
Performance |
| Timeline |
| InBody CoLtd |
| Chorokbaem Healthcare |
InBody CoLtd and Chorokbaem Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InBody CoLtd and Chorokbaem Healthcare
The main advantage of trading using opposite InBody CoLtd and Chorokbaem Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InBody CoLtd position performs unexpectedly, Chorokbaem Healthcare 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 Chorokbaem Healthcare will offset losses from the drop in Chorokbaem Healthcare's long position.| InBody CoLtd vs. Vieworks Co | InBody CoLtd vs. Genie Music | InBody CoLtd vs. Seegene | InBody CoLtd vs. Medy Tox |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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