Correlation Between SEOWONINTECHCoLtd and Bosung Power
Can any of the company-specific risk be diversified away by investing in both SEOWONINTECHCoLtd and Bosung Power 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 SEOWONINTECHCoLtd and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOWONINTECHCoLtd and Bosung Power Technology, you can compare the effects of market volatilities on SEOWONINTECHCoLtd and Bosung Power 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 SEOWONINTECHCoLtd with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOWONINTECHCoLtd and Bosung Power.
Diversification Opportunities for SEOWONINTECHCoLtd and Bosung Power
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEOWONINTECHCoLtd and Bosung is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SEOWONINTECHCoLtd and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of SEOWONINTECHCoLtd i.e., SEOWONINTECHCoLtd and Bosung Power go up and down completely randomly.
Pair Corralation between SEOWONINTECHCoLtd and Bosung Power
Assuming the 90 days trading horizon SEOWONINTECHCoLtd is expected to generate 0.23 times more return on investment than Bosung Power. However, SEOWONINTECHCoLtd is 4.39 times less risky than Bosung Power. It trades about 0.04 of its potential returns per unit of risk. Bosung Power Technology is currently generating about -0.04 per unit of risk. If you would invest 522,768 in SEOWONINTECHCoLtd on October 13, 2024 and sell it today you would earn a total of 25,232 from holding SEOWONINTECHCoLtd or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOWONINTECHCoLtd vs. Bosung Power Technology
Performance |
| Timeline |
| SEOWONINTECHCoLtd |
| Bosung Power Technology |
SEOWONINTECHCoLtd and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOWONINTECHCoLtd and Bosung Power
The main advantage of trading using opposite SEOWONINTECHCoLtd and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOWONINTECHCoLtd position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| SEOWONINTECHCoLtd vs. KMH Hitech Co | SEOWONINTECHCoLtd vs. GemVaxKAEL CoLtd | SEOWONINTECHCoLtd vs. Bosung Power Technology | SEOWONINTECHCoLtd vs. Busan Industrial Co |
| Bosung Power vs. Iljin Display | Bosung Power vs. Lotte Data Communication | Bosung Power vs. Nice Information Telecommunication | Bosung Power vs. SCI Information Service |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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