Correlation Between Ewon Comfortech and Kortek
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and Kortek 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 Kortek 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 Kortek, you can compare the effects of market volatilities on Ewon Comfortech and Kortek 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 Kortek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Kortek.
Diversification Opportunities for Ewon Comfortech and Kortek
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ewon and Kortek is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and Kortek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kortek 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 Kortek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kortek has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and Kortek go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Kortek
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the Kortek. In addition to that, Ewon Comfortech is 2.76 times more volatile than Kortek. It trades about -0.04 of its total potential returns per unit of risk. Kortek is currently generating about 0.02 per unit of volatility. If you would invest 749,000 in Kortek on September 3, 2024 and sell it today you would earn a total of 18,000 from holding Kortek or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ewon Comfortech Co vs. Kortek
Performance |
| Timeline |
| Ewon Comfortech |
| Kortek |
Ewon Comfortech and Kortek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and Kortek
The main advantage of trading using opposite Ewon Comfortech and Kortek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, Kortek 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 Kortek will offset losses from the drop in Kortek's long position.| Ewon Comfortech vs. Korea Real Estate | Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech vs. UNISEM Co | Ewon Comfortech vs. RPBio Inc |
| Kortek vs. Korea Computer Terminal | Kortek vs. Atec Co | Kortek vs. Suprema ID | Kortek vs. Korea Information Engineering |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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