Correlation Between EBEST Investment and Partron
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Partron 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 EBEST Investment and Partron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBEST Investment Securities and Partron Co, you can compare the effects of market volatilities on EBEST Investment and Partron 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 EBEST Investment with a short position of Partron. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Partron.
Diversification Opportunities for EBEST Investment and Partron
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EBEST and Partron is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Partron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partron and EBEST Investment 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 EBEST Investment Securities are associated (or correlated) with Partron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partron has no effect on the direction of EBEST Investment i.e., EBEST Investment and Partron go up and down completely randomly.
Pair Corralation between EBEST Investment and Partron
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Partron. In addition to that, EBEST Investment is 1.09 times more volatile than Partron Co. It trades about -0.23 of its total potential returns per unit of risk. Partron Co is currently generating about 0.15 per unit of volatility. If you would invest 703,000 in Partron Co on August 29, 2024 and sell it today you would earn a total of 25,000 from holding Partron Co or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Partron Co
Performance |
| Timeline |
| EBEST Investment Sec |
| Partron |
EBEST Investment and Partron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Partron
The main advantage of trading using opposite EBEST Investment and Partron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Partron 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 Partron will offset losses from the drop in Partron's long position.| EBEST Investment vs. DB Insurance Co | EBEST Investment vs. KakaoBank Corp | EBEST Investment vs. Pyung Hwa Industrial | EBEST Investment vs. Daiyang Metal Co |
| Partron vs. Korea Real Estate | Partron vs. Korea Ratings Co | Partron vs. IQuest Co | Partron vs. Wonbang Tech 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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