Correlation Between Guyoung Technology and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Guyoung Technology and CS BEARING 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 CS BEARING 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 CS BEARING CoLtd, you can compare the effects of market volatilities on Guyoung Technology and CS BEARING 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 CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guyoung Technology and CS BEARING.
Diversification Opportunities for Guyoung Technology and CS BEARING
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guyoung and 297090 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guyoung Technology Co and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd 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 CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Guyoung Technology i.e., Guyoung Technology and CS BEARING go up and down completely randomly.
Pair Corralation between Guyoung Technology and CS BEARING
Assuming the 90 days trading horizon Guyoung Technology Co is expected to under-perform the CS BEARING. But the stock apears to be less risky and, when comparing its historical volatility, Guyoung Technology Co is 1.68 times less risky than CS BEARING. The stock trades about -0.12 of its potential returns per unit of risk. The CS BEARING CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 423,500 in CS BEARING CoLtd on September 13, 2024 and sell it today you would lose (5,500) from holding CS BEARING CoLtd or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guyoung Technology Co vs. CS BEARING CoLtd
Performance |
| Timeline |
| Guyoung Technology |
| CS BEARING CoLtd |
Guyoung Technology and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guyoung Technology and CS BEARING
The main advantage of trading using opposite Guyoung Technology and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guyoung Technology position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING's long position.| Guyoung Technology vs. Daou Data Corp | Guyoung Technology vs. Solution Advanced Technology | Guyoung Technology vs. Busan Industrial Co | Guyoung Technology vs. Busan Ind |
| CS BEARING vs. Jeju Beer Co | CS BEARING vs. Bohae Brewery | CS BEARING vs. Guyoung Technology Co | CS BEARING vs. Woori Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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