Correlation Between EBEST Investment and Namu Tech
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Namu Tech 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 Namu Tech 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 Namu Tech CoLtd, you can compare the effects of market volatilities on EBEST Investment and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Namu Tech.
Diversification Opportunities for EBEST Investment and Namu Tech
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EBEST and Namu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech CoLtd 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of EBEST Investment i.e., EBEST Investment and Namu Tech go up and down completely randomly.
Pair Corralation between EBEST Investment and Namu Tech
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Namu Tech. But the stock apears to be less risky and, when comparing its historical volatility, EBEST Investment Securities is 2.06 times less risky than Namu Tech. The stock trades about -0.1 of its potential returns per unit of risk. The Namu Tech CoLtd is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 155,000 in Namu Tech CoLtd on September 25, 2024 and sell it today you would lose (6,600) from holding Namu Tech CoLtd or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
EBEST Investment Securities vs. Namu Tech CoLtd
Performance |
| Timeline |
| EBEST Investment Sec |
| Namu Tech CoLtd |
EBEST Investment and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Namu Tech
The main advantage of trading using opposite EBEST Investment and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hyundai Motor | EBEST Investment vs. Hyundai Motor Co |
| Namu Tech vs. Shinhan Inverse Copper | Namu Tech vs. EBEST Investment Securities | Namu Tech vs. Kbi Metal Co | Namu Tech vs. Korea Investment Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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