Correlation Between NewFlex Technology and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology 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 NewFlex Technology and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Eugene Technology CoLtd, you can compare the effects of market volatilities on NewFlex Technology 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 NewFlex Technology with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Eugene Technology.
Diversification Opportunities for NewFlex Technology and Eugene Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NewFlex and Eugene is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology 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 NewFlex 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 NewFlex Technology 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 NewFlex Technology i.e., NewFlex Technology and Eugene Technology go up and down completely randomly.
Pair Corralation between NewFlex Technology and Eugene Technology
Assuming the 90 days trading horizon NewFlex Technology Co is expected to generate 1.29 times more return on investment than Eugene Technology. However, NewFlex Technology is 1.29 times more volatile than Eugene Technology CoLtd. It trades about 0.06 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 479,000 in NewFlex Technology Co on September 24, 2024 and sell it today you would earn a total of 17,000 from holding NewFlex Technology Co or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NewFlex Technology Co vs. Eugene Technology CoLtd
Performance |
| Timeline |
| NewFlex Technology |
| Eugene Technology CoLtd |
NewFlex Technology and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Eugene Technology
The main advantage of trading using opposite NewFlex Technology and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology 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.| NewFlex Technology vs. Seoyon Topmetal Co | NewFlex Technology vs. Duksan Hi Metal | NewFlex Technology vs. PJ Metal Co | NewFlex Technology vs. Youngsin Metal Industrial |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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