Correlation Between FNSTech and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both FNSTech and Eugene Technology 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 FNSTech and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and Eugene Technology CoLtd, you can compare the effects of market volatilities on FNSTech and Eugene Technology 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 FNSTech with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and Eugene Technology.
Diversification Opportunities for FNSTech and Eugene Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FNSTech and Eugene is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech Co and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and FNSTech 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 FNSTech Co are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of FNSTech i.e., FNSTech and Eugene Technology go up and down completely randomly.
Pair Corralation between FNSTech and Eugene Technology
Assuming the 90 days trading horizon FNSTech Co is expected to generate 1.04 times more return on investment than Eugene Technology. However, FNSTech is 1.04 times more volatile than Eugene Technology CoLtd. It trades about -0.1 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about -0.14 per unit of risk. If you would invest 1,077,000 in FNSTech Co on September 2, 2024 and sell it today you would lose (209,000) from holding FNSTech Co or give up 19.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNSTech Co vs. Eugene Technology CoLtd
Performance |
| Timeline |
| FNSTech |
| Eugene Technology CoLtd |
FNSTech and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and Eugene Technology
The main advantage of trading using opposite FNSTech and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| FNSTech vs. Samsung Electronics Co | FNSTech vs. Samsung Electronics Co | FNSTech vs. LG Energy Solution | FNSTech vs. SK Hynix |
| Eugene Technology vs. Korea Investment Holdings | Eugene Technology vs. PLAYWITH | Eugene Technology vs. DB Financial Investment | Eugene Technology vs. LB Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |