Correlation Between A Tech and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both A Tech and Guyoung 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 A Tech and Guyoung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Tech Solution Co and Guyoung Technology Co, you can compare the effects of market volatilities on A Tech and Guyoung 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 A Tech with a short position of Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Tech and Guyoung Technology.
Diversification Opportunities for A Tech and Guyoung Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 071670 and Guyoung is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding A Tech Solution Co and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung Technology and A Tech 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 A Tech Solution Co are associated (or correlated) with Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of A Tech i.e., A Tech and Guyoung Technology go up and down completely randomly.
Pair Corralation between A Tech and Guyoung Technology
Assuming the 90 days trading horizon A Tech is expected to generate 10.83 times less return on investment than Guyoung Technology. In addition to that, A Tech is 1.4 times more volatile than Guyoung Technology Co. It trades about 0.01 of its total potential returns per unit of risk. Guyoung Technology Co is currently generating about 0.15 per unit of volatility. If you would invest 206,379 in Guyoung Technology Co on October 26, 2024 and sell it today you would earn a total of 30,121 from holding Guyoung Technology Co or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Tech Solution Co vs. Guyoung Technology Co
Performance |
| Timeline |
| A Tech Solution |
| Guyoung Technology |
A Tech and Guyoung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Tech and Guyoung Technology
The main advantage of trading using opposite A Tech and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Tech position performs unexpectedly, Guyoung 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.| A Tech vs. Samsung Electronics Co | A Tech vs. Samsung Electronics Co | A Tech vs. KB Financial Group | A Tech vs. Shinhan Financial Group |
| 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 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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