Correlation Between EBEST Investment and Haesung DS
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on EBEST Investment and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Haesung DS.
Diversification Opportunities for EBEST Investment and Haesung DS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EBEST and Haesung is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of EBEST Investment i.e., EBEST Investment and Haesung DS go up and down completely randomly.
Pair Corralation between EBEST Investment and Haesung DS
Assuming the 90 days trading horizon EBEST Investment Securities is expected to generate 0.79 times more return on investment than Haesung DS. However, EBEST Investment Securities is 1.26 times less risky than Haesung DS. It trades about 0.02 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.12 per unit of risk. If you would invest 387,563 in EBEST Investment Securities on August 29, 2024 and sell it today you would earn a total of 26,437 from holding EBEST Investment Securities or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Haesung DS Co
Performance |
| Timeline |
| EBEST Investment Sec |
| Haesung DS |
EBEST Investment and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Haesung DS
The main advantage of trading using opposite EBEST Investment and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| EBEST Investment vs. Cube Entertainment | EBEST Investment vs. Dreamus Company | EBEST Investment vs. LG Energy Solution | EBEST Investment vs. Dongwon System |
| Haesung DS vs. SEOJEON ELECTRIC MACHINERY | Haesung DS vs. Daewoo Engineering Construction | Haesung DS vs. GS Engineering Construction | Haesung DS vs. HJ ShipBuilding Construction |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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