Correlation Between Vieworks and InBody CoLtd
Can any of the company-specific risk be diversified away by investing in both Vieworks and InBody CoLtd 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 Vieworks and InBody CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vieworks Co and InBody CoLtd, you can compare the effects of market volatilities on Vieworks and InBody CoLtd 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 Vieworks with a short position of InBody CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vieworks and InBody CoLtd.
Diversification Opportunities for Vieworks and InBody CoLtd
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vieworks and InBody is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vieworks Co and InBody CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InBody CoLtd and Vieworks 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 Vieworks Co are associated (or correlated) with InBody CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InBody CoLtd has no effect on the direction of Vieworks i.e., Vieworks and InBody CoLtd go up and down completely randomly.
Pair Corralation between Vieworks and InBody CoLtd
Assuming the 90 days trading horizon Vieworks Co is expected to under-perform the InBody CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Vieworks Co is 1.13 times less risky than InBody CoLtd. The stock trades about -0.07 of its potential returns per unit of risk. The InBody CoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,325,000 in InBody CoLtd on October 25, 2024 and sell it today you would earn a total of 120,000 from holding InBody CoLtd or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Vieworks Co vs. InBody CoLtd
Performance |
| Timeline |
| Vieworks |
| InBody CoLtd |
Vieworks and InBody CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vieworks and InBody CoLtd
The main advantage of trading using opposite Vieworks and InBody CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vieworks position performs unexpectedly, InBody CoLtd 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 InBody CoLtd will offset losses from the drop in InBody CoLtd's long position.| Vieworks vs. Medy Tox | Vieworks vs. InBody CoLtd | Vieworks vs. Soulbrain Holdings Co | Vieworks vs. Busan Industrial Co |
| InBody CoLtd vs. Vieworks Co | InBody CoLtd vs. Genie Music | InBody CoLtd vs. Seegene | InBody CoLtd vs. Medy Tox |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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