Correlation Between Ubiquoss Holdings and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Ubiquoss Holdings and EBEST Investment 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 Ubiquoss Holdings and EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquoss Holdings and EBEST Investment Securities, you can compare the effects of market volatilities on Ubiquoss Holdings and EBEST Investment 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 Ubiquoss Holdings with a short position of EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquoss Holdings and EBEST Investment.
Diversification Opportunities for Ubiquoss Holdings and EBEST Investment
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ubiquoss and EBEST is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquoss Holdings and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec and Ubiquoss Holdings 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 Ubiquoss Holdings are associated (or correlated) with EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Ubiquoss Holdings i.e., Ubiquoss Holdings and EBEST Investment go up and down completely randomly.
Pair Corralation between Ubiquoss Holdings and EBEST Investment
Assuming the 90 days trading horizon Ubiquoss Holdings is expected to under-perform the EBEST Investment. But the stock apears to be less risky and, when comparing its historical volatility, Ubiquoss Holdings is 2.15 times less risky than EBEST Investment. The stock trades about -0.11 of its potential returns per unit of risk. The EBEST Investment Securities is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 379,317 in EBEST Investment Securities on September 15, 2024 and sell it today you would earn a total of 19,183 from holding EBEST Investment Securities or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Ubiquoss Holdings vs. EBEST Investment Securities
Performance |
| Timeline |
| Ubiquoss Holdings |
| EBEST Investment Sec |
Ubiquoss Holdings and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquoss Holdings and EBEST Investment
The main advantage of trading using opposite Ubiquoss Holdings and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquoss Holdings position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Ubiquoss Holdings vs. EBEST Investment Securities | Ubiquoss Holdings vs. Golden Bridge Investment | Ubiquoss Holdings vs. Hannong Chemicals | Ubiquoss Holdings vs. DB Financial Investment |
| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hana Financial | EBEST Investment vs. Woori Financial Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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