Correlation Between Showbox Corp and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Showbox Corp and Wireless Power 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 Showbox Corp and Wireless Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Showbox Corp and Wireless Power Amplifier, you can compare the effects of market volatilities on Showbox Corp and Wireless Power 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 Showbox Corp with a short position of Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Showbox Corp and Wireless Power.
Diversification Opportunities for Showbox Corp and Wireless Power
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Showbox and Wireless is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Showbox Corp and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier and Showbox Corp 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 Showbox Corp are associated (or correlated) with Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Showbox Corp i.e., Showbox Corp and Wireless Power go up and down completely randomly.
Pair Corralation between Showbox Corp and Wireless Power
Assuming the 90 days trading horizon Showbox Corp is expected to generate 0.31 times more return on investment than Wireless Power. However, Showbox Corp is 3.22 times less risky than Wireless Power. It trades about 0.49 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about -0.04 per unit of risk. If you would invest 271,012 in Showbox Corp on December 4, 2024 and sell it today you would earn a total of 44,488 from holding Showbox Corp or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Showbox Corp vs. Wireless Power Amplifier
Performance |
| Timeline |
| Showbox Corp |
| Wireless Power Amplifier |
Showbox Corp and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Showbox Corp and Wireless Power
The main advantage of trading using opposite Showbox Corp and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Showbox Corp position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Showbox Corp vs. Pureun Mutual Savings | Showbox Corp vs. Hanwha Life Insurance | Showbox Corp vs. Incar Financial Service | Showbox Corp vs. Dgb Financial |
| Wireless Power vs. Inzi Display CoLtd | Wireless Power vs. Iljin Display | Wireless Power vs. Grand Korea Leisure | Wireless Power vs. Choil Aluminum |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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