Correlation Between Orbitech and GS Retail
Can any of the company-specific risk be diversified away by investing in both Orbitech and GS Retail 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 Orbitech and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and GS Retail Co, you can compare the effects of market volatilities on Orbitech and GS Retail 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 Orbitech with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and GS Retail.
Diversification Opportunities for Orbitech and GS Retail
Good diversification
The 3 months correlation between Orbitech and 007070 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and GS Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Retail and Orbitech 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 Orbitech Co are associated (or correlated) with GS Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Retail has no effect on the direction of Orbitech i.e., Orbitech and GS Retail go up and down completely randomly.
Pair Corralation between Orbitech and GS Retail
Assuming the 90 days trading horizon Orbitech is expected to generate 1.14 times less return on investment than GS Retail. In addition to that, Orbitech is 1.34 times more volatile than GS Retail Co. It trades about 0.12 of its total potential returns per unit of risk. GS Retail Co is currently generating about 0.18 per unit of volatility. If you would invest 2,160,000 in GS Retail Co on September 1, 2024 and sell it today you would earn a total of 155,000 from holding GS Retail Co or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Orbitech Co vs. GS Retail Co
Performance |
| Timeline |
| Orbitech |
| GS Retail |
Orbitech and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and GS Retail
The main advantage of trading using opposite Orbitech and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, GS Retail 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 GS Retail will offset losses from the drop in GS Retail's long position.| Orbitech vs. Korea New Network | Orbitech vs. ICD Co | Orbitech vs. DYPNF CoLtd | Orbitech vs. Busan Industrial Co |
| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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