Correlation Between Ewon Comfortech and Shinsegae
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and Shinsegae 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 Shinsegae 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 Shinsegae, you can compare the effects of market volatilities on Ewon Comfortech and Shinsegae 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 Shinsegae. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Shinsegae.
Diversification Opportunities for Ewon Comfortech and Shinsegae
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ewon and Shinsegae is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and Shinsegae in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae 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 Shinsegae. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and Shinsegae go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Shinsegae
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the Shinsegae. In addition to that, Ewon Comfortech is 2.67 times more volatile than Shinsegae. It trades about -0.07 of its total potential returns per unit of risk. Shinsegae is currently generating about -0.03 per unit of volatility. If you would invest 20,900,000 in Shinsegae on November 27, 2024 and sell it today you would lose (6,010,000) from holding Shinsegae or give up 28.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ewon Comfortech Co vs. Shinsegae
Performance |
| Timeline |
| Ewon Comfortech |
| Shinsegae |
Ewon Comfortech and Shinsegae Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and Shinsegae
The main advantage of trading using opposite Ewon Comfortech and Shinsegae positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, Shinsegae 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 Shinsegae will offset losses from the drop in Shinsegae's long position.| Ewon Comfortech vs. Neungyule Education | Ewon Comfortech vs. Keyang Electric Machinery | Ewon Comfortech vs. Dongwoo Farm To | Ewon Comfortech vs. Camus Engineering Construction |
| Shinsegae vs. Songwon Industrial Co | Shinsegae vs. Daejung Chemicals Metals | Shinsegae vs. SK Chemicals Co | Shinsegae vs. Samhwa Paint Industrial |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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