Correlation Between Elentec Co and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both Elentec Co and Narae Nanotech 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 Elentec Co and Narae Nanotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elentec Co and Narae Nanotech Corp, you can compare the effects of market volatilities on Elentec Co and Narae Nanotech 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 Elentec Co with a short position of Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elentec Co and Narae Nanotech.
Diversification Opportunities for Elentec Co and Narae Nanotech
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elentec and Narae is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Elentec Co and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp and Elentec Co 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 Elentec Co are associated (or correlated) with Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Elentec Co i.e., Elentec Co and Narae Nanotech go up and down completely randomly.
Pair Corralation between Elentec Co and Narae Nanotech
Assuming the 90 days trading horizon Elentec Co is expected to under-perform the Narae Nanotech. In addition to that, Elentec Co is 1.03 times more volatile than Narae Nanotech Corp. It trades about -0.04 of its total potential returns per unit of risk. Narae Nanotech Corp is currently generating about -0.04 per unit of volatility. If you would invest 728,932 in Narae Nanotech Corp on September 13, 2024 and sell it today you would lose (402,432) from holding Narae Nanotech Corp or give up 55.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elentec Co vs. Narae Nanotech Corp
Performance |
| Timeline |
| Elentec Co |
| Narae Nanotech Corp |
Elentec Co and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elentec Co and Narae Nanotech
The main advantage of trading using opposite Elentec Co and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elentec Co position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Elentec Co vs. Lake Materials Co | Elentec Co vs. CJ Seafood Corp | Elentec Co vs. Sewoon Medical Co | Elentec Co vs. Iljin Materials Co |
| Narae Nanotech vs. HyVision System | Narae Nanotech vs. Daebo Magnetic CoLtd | Narae Nanotech vs. Vitzro Tech Co | Narae Nanotech vs. Solution Advanced 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |