Correlation Between InBody CoLtd and Green Cross
Can any of the company-specific risk be diversified away by investing in both InBody CoLtd and Green Cross 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 Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InBody CoLtd and Green Cross Medical, you can compare the effects of market volatilities on InBody CoLtd and Green Cross 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 Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of InBody CoLtd and Green Cross.
Diversification Opportunities for InBody CoLtd and Green Cross
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between InBody and Green is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding InBody CoLtd and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical 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 Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of InBody CoLtd i.e., InBody CoLtd and Green Cross go up and down completely randomly.
Pair Corralation between InBody CoLtd and Green Cross
Assuming the 90 days trading horizon InBody CoLtd is expected to generate 1.08 times more return on investment than Green Cross. However, InBody CoLtd is 1.08 times more volatile than Green Cross Medical. It trades about 0.03 of its potential returns per unit of risk. Green Cross Medical is currently generating about -0.16 per unit of risk. If you would invest 2,345,000 in InBody CoLtd on December 11, 2024 and sell it today you would earn a total of 30,000 from holding InBody CoLtd or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InBody CoLtd vs. Green Cross Medical
Performance |
| Timeline |
| InBody CoLtd |
| Green Cross Medical |
InBody CoLtd and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InBody CoLtd and Green Cross
The main advantage of trading using opposite InBody CoLtd and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InBody CoLtd position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| InBody CoLtd vs. Vieworks Co | InBody CoLtd vs. Genie Music | InBody CoLtd vs. Seegene | InBody CoLtd vs. Medy Tox |
| Green Cross vs. Daedong Metals Co | Green Cross vs. Taeyang Metal Industrial | Green Cross vs. Samyang Foods Co | Green Cross vs. DONGKUK TED METAL |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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