Correlation Between E Investment and Lotte Data
Can any of the company-specific risk be diversified away by investing in both E Investment and Lotte Data 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 Lotte Data 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 Lotte Data Communication, you can compare the effects of market volatilities on E Investment and Lotte Data 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 Lotte Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Lotte Data.
Diversification Opportunities for E Investment and Lotte Data
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Lotte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Lotte Data Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Data Communication 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 Lotte Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Data Communication has no effect on the direction of E Investment i.e., E Investment and Lotte Data go up and down completely randomly.
Pair Corralation between E Investment and Lotte Data
If you would invest 139,200 in E Investment Development on August 25, 2024 and sell it today you would earn a total of 0.00 from holding E Investment Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
E Investment Development vs. Lotte Data Communication
Performance |
| Timeline |
| E Investment Development |
| Lotte Data Communication |
E Investment and Lotte Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Lotte Data
The main advantage of trading using opposite E Investment and Lotte Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Lotte Data 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 Lotte Data will offset losses from the drop in Lotte Data's long position.| E Investment vs. Sangsangin Investment Securities | E Investment vs. Cots Technology Co | E Investment vs. Dongil Technology | E Investment vs. Solution Advanced Technology |
| Lotte Data vs. SCI Information Service | Lotte Data vs. DataSolution | Lotte Data vs. Koryo Credit Information | Lotte Data vs. Seoul Electronics Telecom |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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