Correlation Between INtRON Biotechnology and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Seoyon Topmetal 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 INtRON Biotechnology and Seoyon Topmetal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Seoyon Topmetal Co, you can compare the effects of market volatilities on INtRON Biotechnology and Seoyon Topmetal 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 INtRON Biotechnology with a short position of Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Seoyon Topmetal.
Diversification Opportunities for INtRON Biotechnology and Seoyon Topmetal
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INtRON and Seoyon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Seoyon Topmetal
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the Seoyon Topmetal. But the stock apears to be less risky and, when comparing its historical volatility, iNtRON Biotechnology is 1.17 times less risky than Seoyon Topmetal. The stock trades about -0.09 of its potential returns per unit of risk. The Seoyon Topmetal Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 361,000 in Seoyon Topmetal Co on August 25, 2024 and sell it today you would earn a total of 23,500 from holding Seoyon Topmetal Co or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Seoyon Topmetal Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Seoyon Topmetal |
INtRON Biotechnology and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Seoyon Topmetal
The main advantage of trading using opposite INtRON Biotechnology and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Seoyon Topmetal vs. Busan Industrial Co | Seoyon Topmetal vs. Busan Ind | Seoyon Topmetal vs. Mirae Asset Daewoo | Seoyon Topmetal vs. UNISEM 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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