Correlation Between SEOWONINTECHCoLtd and PH Tech
Can any of the company-specific risk be diversified away by investing in both SEOWONINTECHCoLtd and PH Tech 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 PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOWONINTECHCoLtd and PH Tech Co, you can compare the effects of market volatilities on SEOWONINTECHCoLtd and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOWONINTECHCoLtd and PH Tech.
Diversification Opportunities for SEOWONINTECHCoLtd and PH Tech
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SEOWONINTECHCoLtd and 239890 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SEOWONINTECHCoLtd and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of SEOWONINTECHCoLtd i.e., SEOWONINTECHCoLtd and PH Tech go up and down completely randomly.
Pair Corralation between SEOWONINTECHCoLtd and PH Tech
Assuming the 90 days trading horizon SEOWONINTECHCoLtd is expected to generate 5.71 times less return on investment than PH Tech. But when comparing it to its historical volatility, SEOWONINTECHCoLtd is 2.77 times less risky than PH Tech. It trades about 0.18 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 710,000 in PH Tech Co on October 14, 2024 and sell it today you would earn a total of 145,000 from holding PH Tech Co or generate 20.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOWONINTECHCoLtd vs. PH Tech Co
Performance |
| Timeline |
| SEOWONINTECHCoLtd |
| PH Tech |
SEOWONINTECHCoLtd and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOWONINTECHCoLtd and PH Tech
The main advantage of trading using opposite SEOWONINTECHCoLtd and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOWONINTECHCoLtd position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| SEOWONINTECHCoLtd vs. KMH Hitech Co | SEOWONINTECHCoLtd vs. GemVaxKAEL CoLtd | SEOWONINTECHCoLtd vs. Bosung Power Technology | SEOWONINTECHCoLtd vs. Busan Industrial Co |
| PH Tech vs. Daeduck Electronics Co | PH Tech vs. Narae Nanotech Corp | PH Tech vs. SEOWONINTECHCoLtd | PH Tech vs. KMH Hitech 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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