Correlation Between EBEST Investment and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on EBEST Investment and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Cuckoo Homesys.
Diversification Opportunities for EBEST Investment and Cuckoo Homesys
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EBEST and Cuckoo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of EBEST Investment i.e., EBEST Investment and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between EBEST Investment and Cuckoo Homesys
Assuming the 90 days trading horizon EBEST Investment Securities is expected to generate 1.09 times more return on investment than Cuckoo Homesys. However, EBEST Investment is 1.09 times more volatile than Cuckoo Homesys Co. It trades about -0.02 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.04 per unit of risk. If you would invest 524,905 in EBEST Investment Securities on September 13, 2024 and sell it today you would lose (132,905) from holding EBEST Investment Securities or give up 25.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Cuckoo Homesys Co
Performance |
| Timeline |
| EBEST Investment Sec |
| Cuckoo Homesys |
EBEST Investment and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Cuckoo Homesys
The main advantage of trading using opposite EBEST Investment and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hana Financial | EBEST Investment vs. Woori Financial Group |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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