Correlation Between E Investment and Formetal
Can any of the company-specific risk be diversified away by investing in both E Investment and Formetal 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 Formetal 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 Formetal Co, you can compare the effects of market volatilities on E Investment and Formetal 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 Formetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Formetal.
Diversification Opportunities for E Investment and Formetal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Formetal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Formetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formetal 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 Formetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formetal has no effect on the direction of E Investment i.e., E Investment and Formetal go up and down completely randomly.
Pair Corralation between E Investment and Formetal
If you would invest 353,500 in Formetal Co on November 6, 2024 and sell it today you would earn a total of 22,000 from holding Formetal Co or generate 6.22% 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. Formetal Co
Performance |
| Timeline |
| E Investment Development |
| Formetal |
E Investment and Formetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Formetal
The main advantage of trading using opposite E Investment and Formetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Formetal 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 Formetal will offset losses from the drop in Formetal's long position.| E Investment vs. Guyoung Technology Co | E Investment vs. Moadata Co | E Investment vs. BIT Computer Co | E Investment vs. Seers Technology |
| Formetal vs. NICE Information Service | Formetal vs. Jeong Moon Information | Formetal vs. Korea Industrial Co | Formetal vs. Pyung Hwa Industrial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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