Correlation Between Ewon Comfortech and Korea Computer
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and Korea Computer 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 Korea Computer 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 Korea Computer Terminal, you can compare the effects of market volatilities on Ewon Comfortech and Korea Computer 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 Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Korea Computer.
Diversification Opportunities for Ewon Comfortech and Korea Computer
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ewon and Korea is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and Korea Computer Terminal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer Terminal 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 Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer Terminal has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and Korea Computer go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Korea Computer
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the Korea Computer. In addition to that, Ewon Comfortech is 1.63 times more volatile than Korea Computer Terminal. It trades about -0.07 of its total potential returns per unit of risk. Korea Computer Terminal is currently generating about -0.01 per unit of volatility. If you would invest 340,609 in Korea Computer Terminal on September 3, 2024 and sell it today you would lose (97,609) from holding Korea Computer Terminal or give up 28.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ewon Comfortech Co vs. Korea Computer Terminal
Performance |
| Timeline |
| Ewon Comfortech |
| Korea Computer Terminal |
Ewon Comfortech and Korea Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and Korea Computer
The main advantage of trading using opposite Ewon Comfortech and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, Korea Computer 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 Korea Computer will offset losses from the drop in Korea Computer'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 |
| Korea Computer vs. Heungkuk Metaltech CoLtd | Korea Computer vs. Jeju Beer Co | Korea Computer vs. Kbi Metal Co | Korea Computer vs. Playgram Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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