Correlation Between Eugene Technology and FNSTech
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and FNSTech 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 Eugene Technology and FNSTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and FNSTech Co, you can compare the effects of market volatilities on Eugene Technology and FNSTech 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 Eugene Technology with a short position of FNSTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and FNSTech.
Diversification Opportunities for Eugene Technology and FNSTech
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eugene and FNSTech is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and FNSTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNSTech and Eugene Technology 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 Eugene Technology CoLtd are associated (or correlated) with FNSTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNSTech has no effect on the direction of Eugene Technology i.e., Eugene Technology and FNSTech go up and down completely randomly.
Pair Corralation between Eugene Technology and FNSTech
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 1.01 times more return on investment than FNSTech. However, Eugene Technology is 1.01 times more volatile than FNSTech Co. It trades about 0.04 of its potential returns per unit of risk. FNSTech Co is currently generating about 0.02 per unit of risk. If you would invest 2,381,456 in Eugene Technology CoLtd on September 2, 2024 and sell it today you would earn a total of 958,544 from holding Eugene Technology CoLtd or generate 40.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. FNSTech Co
Performance |
| Timeline |
| Eugene Technology CoLtd |
| FNSTech |
Eugene Technology and FNSTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and FNSTech
The main advantage of trading using opposite Eugene Technology and FNSTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, FNSTech 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 FNSTech will offset losses from the drop in FNSTech's long position.| Eugene Technology vs. Korea Investment Holdings | Eugene Technology vs. PLAYWITH | Eugene Technology vs. DB Financial Investment | Eugene Technology vs. LB Investment |
| FNSTech vs. Samsung Electronics Co | FNSTech vs. Samsung Electronics Co | FNSTech vs. LG Energy Solution | FNSTech vs. SK Hynix |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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