Correlation Between Eugene Technology and Koh Young
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and Koh Young 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 Koh Young 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 Koh Young Technology, you can compare the effects of market volatilities on Eugene Technology and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Koh Young.
Diversification Opportunities for Eugene Technology and Koh Young
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eugene and Koh is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Eugene Technology i.e., Eugene Technology and Koh Young go up and down completely randomly.
Pair Corralation between Eugene Technology and Koh Young
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 1.36 times more return on investment than Koh Young. However, Eugene Technology is 1.36 times more volatile than Koh Young Technology. It trades about 0.05 of its potential returns per unit of risk. Koh Young Technology is currently generating about 0.03 per unit of risk. If you would invest 3,325,000 in Eugene Technology CoLtd on September 20, 2024 and sell it today you would earn a total of 75,000 from holding Eugene Technology CoLtd or generate 2.26% 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. Koh Young Technology
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Koh Young Technology |
Eugene Technology and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Koh Young
The main advantage of trading using opposite Eugene Technology and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Eugene Technology vs. Value Added Technology | Eugene Technology vs. Puloon Technology | Eugene Technology vs. Ssangyong Information Communication | Eugene Technology vs. People 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |