Correlation Between E Investment and TOPMATERIAL
Can any of the company-specific risk be diversified away by investing in both E Investment and TOPMATERIAL 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 TOPMATERIAL 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 TOPMATERIAL LTD, you can compare the effects of market volatilities on E Investment and TOPMATERIAL 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 TOPMATERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and TOPMATERIAL.
Diversification Opportunities for E Investment and TOPMATERIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and TOPMATERIAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and TOPMATERIAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPMATERIAL LTD 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 TOPMATERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPMATERIAL LTD has no effect on the direction of E Investment i.e., E Investment and TOPMATERIAL go up and down completely randomly.
Pair Corralation between E Investment and TOPMATERIAL
If you would invest 2,705,000 in TOPMATERIAL LTD on October 25, 2024 and sell it today you would earn a total of 100,000 from holding TOPMATERIAL LTD or generate 3.7% 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. TOPMATERIAL LTD
Performance |
| Timeline |
| E Investment Development |
| TOPMATERIAL LTD |
E Investment and TOPMATERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and TOPMATERIAL
The main advantage of trading using opposite E Investment and TOPMATERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, TOPMATERIAL 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 TOPMATERIAL will offset losses from the drop in TOPMATERIAL's long position.| E Investment vs. Jeju Beer Co | E Investment vs. iNtRON Biotechnology | E Investment vs. Korea Alcohol Industrial | E Investment vs. Jinro Distillers Co |
| TOPMATERIAL vs. Nice Information Telecommunication | TOPMATERIAL vs. Iljin Display | TOPMATERIAL vs. Daishin Information Communications | TOPMATERIAL vs. Sewoon Medical 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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