Correlation Between Guyoung Technology and GS Retail
Can any of the company-specific risk be diversified away by investing in both Guyoung Technology 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 Guyoung Technology and GS Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guyoung Technology Co and GS Retail Co, you can compare the effects of market volatilities on Guyoung Technology 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 Guyoung Technology with a short position of GS Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guyoung Technology and GS Retail.
Diversification Opportunities for Guyoung Technology and GS Retail
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guyoung and 007070 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guyoung Technology 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 Guyoung Technology 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 Guyoung Technology 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 Guyoung Technology i.e., Guyoung Technology and GS Retail go up and down completely randomly.
Pair Corralation between Guyoung Technology and GS Retail
Assuming the 90 days trading horizon Guyoung Technology Co is expected to generate 1.29 times more return on investment than GS Retail. However, Guyoung Technology is 1.29 times more volatile than GS Retail Co. It trades about 0.4 of its potential returns per unit of risk. GS Retail Co is currently generating about -0.31 per unit of risk. If you would invest 201,500 in Guyoung Technology Co on October 26, 2024 and sell it today you would earn a total of 35,000 from holding Guyoung Technology Co or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guyoung Technology Co vs. GS Retail Co
Performance |
| Timeline |
| Guyoung Technology |
| GS Retail |
Guyoung Technology and GS Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guyoung Technology and GS Retail
The main advantage of trading using opposite Guyoung Technology and GS Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guyoung Technology 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.| Guyoung Technology vs. Daesung Hi Tech Co | Guyoung Technology vs. PNC Technologies co | Guyoung Technology vs. Lotte Chilsung Beverage | Guyoung Technology vs. A Tech Solution Co |
| GS Retail vs. KB Financial Group | GS Retail vs. Shinhan Financial Group | GS Retail vs. Hana Financial | GS Retail vs. Woori Financial Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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