Correlation Between Pyung Hwa and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Pyung Hwa and Eugene Technology 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 Pyung Hwa and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyung Hwa Industrial and Eugene Technology CoLtd, you can compare the effects of market volatilities on Pyung Hwa and Eugene Technology 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 Pyung Hwa with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyung Hwa and Eugene Technology.
Diversification Opportunities for Pyung Hwa and Eugene Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyung and Eugene is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pyung Hwa Industrial and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and Pyung Hwa 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 Pyung Hwa Industrial are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Pyung Hwa i.e., Pyung Hwa and Eugene Technology go up and down completely randomly.
Pair Corralation between Pyung Hwa and Eugene Technology
Assuming the 90 days trading horizon Pyung Hwa Industrial is expected to under-perform the Eugene Technology. But the stock apears to be less risky and, when comparing its historical volatility, Pyung Hwa Industrial is 1.45 times less risky than Eugene Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Eugene Technology CoLtd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,681,187 in Eugene Technology CoLtd on October 12, 2024 and sell it today you would earn a total of 1,043,813 from holding Eugene Technology CoLtd or generate 38.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyung Hwa Industrial vs. Eugene Technology CoLtd
Performance |
| Timeline |
| Pyung Hwa Industrial |
| Eugene Technology CoLtd |
Pyung Hwa and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyung Hwa and Eugene Technology
The main advantage of trading using opposite Pyung Hwa and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyung Hwa position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| Pyung Hwa vs. AptaBio Therapeutics | Pyung Hwa vs. Daewoo SBI SPAC | Pyung Hwa vs. Dream Security co | Pyung Hwa vs. Microfriend |
| Eugene Technology vs. Pyung Hwa Industrial | Eugene Technology vs. Leaders Technology Investment | Eugene Technology vs. Drb Industrial | Eugene Technology vs. Atinum Investment 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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