Correlation Between Ewon Comfortech and PH Tech
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Ewon Comfortech and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and PH Tech.
Diversification Opportunities for Ewon Comfortech and PH Tech
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ewon and 239890 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and PH Tech go up and down completely randomly.
Pair Corralation between Ewon Comfortech and PH Tech
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the PH Tech. In addition to that, Ewon Comfortech is 1.46 times more volatile than PH Tech Co. It trades about -0.06 of its total potential returns per unit of risk. PH Tech Co is currently generating about -0.03 per unit of volatility. If you would invest 1,720,000 in PH Tech Co on November 4, 2024 and sell it today you would lose (945,000) from holding PH Tech Co or give up 54.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ewon Comfortech Co vs. PH Tech Co
Performance |
| Timeline |
| Ewon Comfortech |
| PH Tech |
Ewon Comfortech and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and PH Tech
The main advantage of trading using opposite Ewon Comfortech and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Hyundai Motor Co | Ewon Comfortech vs. Hyundai Motor |
| PH Tech vs. Sam Yang Foods | PH Tech vs. Haitai Confectionery Foods | PH Tech vs. BooKook Steel Co | PH Tech vs. Insun Environment New |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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