Correlation Between Korea Computer and Seers Technology
Can any of the company-specific risk be diversified away by investing in both Korea Computer and Seers Technology 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 Korea Computer and Seers Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Computer and Seers Technology, you can compare the effects of market volatilities on Korea Computer and Seers Technology 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 Korea Computer with a short position of Seers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Computer and Seers Technology.
Diversification Opportunities for Korea Computer and Seers Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Korea and Seers is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Korea Computer and Seers Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seers Technology and Korea Computer 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 Korea Computer are associated (or correlated) with Seers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seers Technology has no effect on the direction of Korea Computer i.e., Korea Computer and Seers Technology go up and down completely randomly.
Pair Corralation between Korea Computer and Seers Technology
Assuming the 90 days trading horizon Korea Computer is expected to under-perform the Seers Technology. But the stock apears to be less risky and, when comparing its historical volatility, Korea Computer is 2.67 times less risky than Seers Technology. The stock trades about -0.28 of its potential returns per unit of risk. The Seers Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,193,000 in Seers Technology on November 6, 2024 and sell it today you would earn a total of 208,000 from holding Seers Technology or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Computer vs. Seers Technology
Performance |
| Timeline |
| Korea Computer |
| Seers Technology |
Korea Computer and Seers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Computer and Seers Technology
The main advantage of trading using opposite Korea Computer and Seers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Computer position performs unexpectedly, Seers Technology 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 Seers Technology will offset losses from the drop in Seers Technology's long position.| Korea Computer vs. Samsung Electronics Co | Korea Computer vs. Samsung Electronics Co | Korea Computer vs. Hyundai Motor Co | Korea Computer vs. Hyundai Motor |
| Seers Technology vs. Solution Advanced Technology | Seers Technology vs. HB Technology TD | Seers Technology vs. Woori Technology | Seers Technology vs. Iljin Display |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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