Correlation Between Vissem Electronics and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Vissem Electronics and Bosung Power 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 Vissem Electronics and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vissem Electronics Co and Bosung Power Technology, you can compare the effects of market volatilities on Vissem Electronics and Bosung Power 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 Vissem Electronics with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vissem Electronics and Bosung Power.
Diversification Opportunities for Vissem Electronics and Bosung Power
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vissem and Bosung is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Vissem Electronics Co and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and Vissem Electronics 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 Vissem Electronics Co are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Vissem Electronics i.e., Vissem Electronics and Bosung Power go up and down completely randomly.
Pair Corralation between Vissem Electronics and Bosung Power
Assuming the 90 days trading horizon Vissem Electronics Co is expected to generate 0.92 times more return on investment than Bosung Power. However, Vissem Electronics Co is 1.09 times less risky than Bosung Power. It trades about 0.0 of its potential returns per unit of risk. Bosung Power Technology is currently generating about -0.01 per unit of risk. If you would invest 459,772 in Vissem Electronics Co on October 23, 2024 and sell it today you would lose (91,772) from holding Vissem Electronics Co or give up 19.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vissem Electronics Co vs. Bosung Power Technology
Performance |
| Timeline |
| Vissem Electronics |
| Bosung Power Technology |
Vissem Electronics and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vissem Electronics and Bosung Power
The main advantage of trading using opposite Vissem Electronics and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vissem Electronics position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Vissem Electronics vs. Cuckoo Homesys Co | Vissem Electronics vs. E Investment Development | Vissem Electronics vs. KTB Investment Securities | Vissem Electronics vs. SV Investment |
| Bosung Power vs. Dongil Metal Co | Bosung Power vs. Seoul Food Industrial | Bosung Power vs. Haitai Confectionery Foods | Bosung Power vs. Korean Drug 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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