Correlation Between GemVaxKAEL CoLtd and Fine Besteel
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and Fine Besteel 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 Fine Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and Fine Besteel Co, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and Fine Besteel 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 Fine Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and Fine Besteel.
Diversification Opportunities for GemVaxKAEL CoLtd and Fine Besteel
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GemVaxKAEL and Fine is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and Fine Besteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Besteel 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 Fine Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Besteel has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and Fine Besteel go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and Fine Besteel
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 2.12 times more return on investment than Fine Besteel. However, GemVaxKAEL CoLtd is 2.12 times more volatile than Fine Besteel Co. It trades about 0.61 of its potential returns per unit of risk. Fine Besteel Co is currently generating about 0.16 per unit of risk. If you would invest 1,887,000 in GemVaxKAEL CoLtd on November 27, 2024 and sell it today you would earn a total of 1,588,000 from holding GemVaxKAEL CoLtd or generate 84.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. Fine Besteel Co
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| Fine Besteel |
GemVaxKAEL CoLtd and Fine Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and Fine Besteel
The main advantage of trading using opposite GemVaxKAEL CoLtd and Fine Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, Fine Besteel 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 Fine Besteel will offset losses from the drop in Fine Besteel's long position.| GemVaxKAEL CoLtd vs. Hwangkum Steel Technology | GemVaxKAEL CoLtd vs. Echomarketing CoLtd | GemVaxKAEL CoLtd vs. Leaders Technology Investment | GemVaxKAEL CoLtd vs. SV Investment |
| Fine Besteel vs. Vina Technology Co | Fine Besteel vs. Digital Imaging Technology | Fine Besteel vs. Sangsin Energy Display | Fine Besteel vs. Hana Technology Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |