Correlation Between E Investment and Bohae Brewery
Can any of the company-specific risk be diversified away by investing in both E Investment and Bohae Brewery 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 E Investment and Bohae Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Bohae Brewery, you can compare the effects of market volatilities on E Investment and Bohae Brewery 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 E Investment with a short position of Bohae Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Bohae Brewery.
Diversification Opportunities for E Investment and Bohae Brewery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Bohae is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Bohae Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohae Brewery and E Investment 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 E Investment Development are associated (or correlated) with Bohae Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohae Brewery has no effect on the direction of E Investment i.e., E Investment and Bohae Brewery go up and down completely randomly.
Pair Corralation between E Investment and Bohae Brewery
If you would invest 42,300 in Bohae Brewery on September 1, 2024 and sell it today you would earn a total of 4,300 from holding Bohae Brewery or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. Bohae Brewery
Performance |
| Timeline |
| E Investment Development |
| Bohae Brewery |
E Investment and Bohae Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Bohae Brewery
The main advantage of trading using opposite E Investment and Bohae Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Bohae Brewery 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 Bohae Brewery will offset losses from the drop in Bohae Brewery's long position.| E Investment vs. Dongsin Engineering Construction | E Investment vs. Doosan Fuel Cell | E Investment vs. Daishin Balance 1 | E Investment vs. Total Soft Bank |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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