Correlation Between Ezwelfare and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Ezwelfare and Iljin Display 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 Ezwelfare and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ezwelfare Co and Iljin Display, you can compare the effects of market volatilities on Ezwelfare and Iljin Display 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 Ezwelfare with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ezwelfare and Iljin Display.
Diversification Opportunities for Ezwelfare and Iljin Display
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ezwelfare and Iljin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ezwelfare Co and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Ezwelfare 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 Ezwelfare Co are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Ezwelfare i.e., Ezwelfare and Iljin Display go up and down completely randomly.
Pair Corralation between Ezwelfare and Iljin Display
Assuming the 90 days trading horizon Ezwelfare Co is expected to generate 1.38 times more return on investment than Iljin Display. However, Ezwelfare is 1.38 times more volatile than Iljin Display. It trades about 0.01 of its potential returns per unit of risk. Iljin Display is currently generating about 0.01 per unit of risk. If you would invest 497,309 in Ezwelfare Co on October 24, 2024 and sell it today you would lose (1,309) from holding Ezwelfare Co or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ezwelfare Co vs. Iljin Display
Performance |
| Timeline |
| Ezwelfare |
| Iljin Display |
Ezwelfare and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ezwelfare and Iljin Display
The main advantage of trading using opposite Ezwelfare and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ezwelfare position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Ezwelfare vs. Iljin Display | Ezwelfare vs. GS Retail Co | Ezwelfare vs. Sangsin Energy Display | Ezwelfare vs. Alton Sports CoLtd |
| Iljin Display vs. Digital Power Communications | Iljin Display vs. SBI Investment KOREA | Iljin Display vs. DSC Investment | Iljin Display vs. Nice Information Telecommunication |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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