Correlation Between Eugene Technology and CKH Food
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Eugene Technology and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and CKH Food.
Diversification Opportunities for Eugene Technology and CKH Food
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eugene and CKH is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Eugene Technology i.e., Eugene Technology and CKH Food go up and down completely randomly.
Pair Corralation between Eugene Technology and CKH Food
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 2.1 times more return on investment than CKH Food. However, Eugene Technology is 2.1 times more volatile than CKH Food Health. It trades about 0.27 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.09 per unit of risk. If you would invest 3,115,000 in Eugene Technology CoLtd on November 3, 2024 and sell it today you would earn a total of 575,000 from holding Eugene Technology CoLtd or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. CKH Food Health
Performance |
| Timeline |
| Eugene Technology CoLtd |
| CKH Food Health |
Eugene Technology and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and CKH Food
The main advantage of trading using opposite Eugene Technology and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| Eugene Technology vs. Pureun Mutual Savings | Eugene Technology vs. Stic Investments | Eugene Technology vs. SBI Investment KOREA | Eugene Technology vs. Kukil Metal Co |
| CKH Food vs. Kg Chemical | CKH Food vs. Daishin Information Communications | CKH Food vs. SK Telecom Co | CKH Food vs. ECSTELECOM 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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