Correlation Between Orbitech and Poongsan
Can any of the company-specific risk be diversified away by investing in both Orbitech and Poongsan 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 Poongsan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Poongsan, you can compare the effects of market volatilities on Orbitech and Poongsan 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 Poongsan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Poongsan.
Diversification Opportunities for Orbitech and Poongsan
Very weak diversification
The 3 months correlation between Orbitech and Poongsan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Poongsan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poongsan 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 Poongsan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poongsan has no effect on the direction of Orbitech i.e., Orbitech and Poongsan go up and down completely randomly.
Pair Corralation between Orbitech and Poongsan
Assuming the 90 days trading horizon Orbitech Co is expected to generate 1.23 times more return on investment than Poongsan. However, Orbitech is 1.23 times more volatile than Poongsan. It trades about 0.03 of its potential returns per unit of risk. Poongsan is currently generating about -0.01 per unit of risk. If you would invest 243,000 in Orbitech Co on October 25, 2024 and sell it today you would earn a total of 5,000 from holding Orbitech Co or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. Poongsan
Performance |
| Timeline |
| Orbitech |
| Poongsan |
Orbitech and Poongsan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Poongsan
The main advantage of trading using opposite Orbitech and Poongsan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Poongsan 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 Poongsan will offset losses from the drop in Poongsan's long position.| Orbitech vs. Daishin Information Communications | Orbitech vs. Lotte Data Communication | Orbitech vs. Digital Power Communications | Orbitech vs. CG Hi Tech |
| Poongsan vs. Seers Technology | Poongsan vs. AeroSpace Technology of | Poongsan vs. Adaptive Plasma Technology | Poongsan vs. Orbitech Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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