Correlation Between Ewon Comfortech and Namyang Dairy
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and Namyang Dairy 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 Ewon Comfortech and Namyang Dairy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ewon Comfortech Co and Namyang Dairy, you can compare the effects of market volatilities on Ewon Comfortech and Namyang Dairy 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 Ewon Comfortech with a short position of Namyang Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Namyang Dairy.
Diversification Opportunities for Ewon Comfortech and Namyang Dairy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ewon and Namyang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and Namyang Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namyang Dairy and Ewon Comfortech 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 Ewon Comfortech Co are associated (or correlated) with Namyang Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namyang Dairy has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and Namyang Dairy go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Namyang Dairy
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to generate 0.17 times more return on investment than Namyang Dairy. However, Ewon Comfortech Co is 5.9 times less risky than Namyang Dairy. It trades about -0.11 of its potential returns per unit of risk. Namyang Dairy is currently generating about -0.23 per unit of risk. If you would invest 100,200 in Ewon Comfortech Co on September 13, 2024 and sell it today you would lose (8,700) from holding Ewon Comfortech Co or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ewon Comfortech Co vs. Namyang Dairy
Performance |
| Timeline |
| Ewon Comfortech |
| Namyang Dairy |
Ewon Comfortech and Namyang Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and Namyang Dairy
The main advantage of trading using opposite Ewon Comfortech and Namyang Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, Namyang Dairy 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 Namyang Dairy will offset losses from the drop in Namyang Dairy's long position.| Ewon Comfortech vs. Daou Data Corp | Ewon Comfortech vs. Solution Advanced Technology | Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech vs. Busan Ind |
| Namyang Dairy vs. Korea New Network | Namyang Dairy vs. ICD Co | Namyang Dairy vs. DYPNF CoLtd | Namyang Dairy vs. Solution Advanced 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |