Correlation Between GemVaxKAEL CoLtd and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and Ewon Comfortech 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 GemVaxKAEL CoLtd and Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and Ewon Comfortech Co, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and Ewon Comfortech 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 GemVaxKAEL CoLtd with a short position of Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and Ewon Comfortech.
Diversification Opportunities for GemVaxKAEL CoLtd and Ewon Comfortech
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GemVaxKAEL and Ewon is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd are associated (or correlated) with Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and Ewon Comfortech go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and Ewon Comfortech
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 1.12 times more return on investment than Ewon Comfortech. However, GemVaxKAEL CoLtd is 1.12 times more volatile than Ewon Comfortech Co. It trades about 0.09 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.09 per unit of risk. If you would invest 1,484,000 in GemVaxKAEL CoLtd on November 28, 2024 and sell it today you would earn a total of 2,111,000 from holding GemVaxKAEL CoLtd or generate 142.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. Ewon Comfortech Co
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| Ewon Comfortech |
GemVaxKAEL CoLtd and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and Ewon Comfortech
The main advantage of trading using opposite GemVaxKAEL CoLtd and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| GemVaxKAEL CoLtd vs. Daishin Information Communications | GemVaxKAEL CoLtd vs. Koryo Credit Information | GemVaxKAEL CoLtd vs. LG Household Healthcare | GemVaxKAEL CoLtd vs. GS Retail Co |
| Ewon Comfortech vs. Guyoung Technology Co | Ewon Comfortech vs. DB Financial Investment | Ewon Comfortech vs. Air Busan Co | Ewon Comfortech vs. Seers Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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