Correlation Between Finetechnix CoLtd and KEYEASTCoLtd
Can any of the company-specific risk be diversified away by investing in both Finetechnix CoLtd and KEYEASTCoLtd 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 Finetechnix CoLtd and KEYEASTCoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finetechnix CoLtd and KEYEASTCoLtd, you can compare the effects of market volatilities on Finetechnix CoLtd and KEYEASTCoLtd 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 Finetechnix CoLtd with a short position of KEYEASTCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finetechnix CoLtd and KEYEASTCoLtd.
Diversification Opportunities for Finetechnix CoLtd and KEYEASTCoLtd
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Finetechnix and KEYEASTCoLtd is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Finetechnix CoLtd and KEYEASTCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYEASTCoLtd and Finetechnix CoLtd 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 Finetechnix CoLtd are associated (or correlated) with KEYEASTCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYEASTCoLtd has no effect on the direction of Finetechnix CoLtd i.e., Finetechnix CoLtd and KEYEASTCoLtd go up and down completely randomly.
Pair Corralation between Finetechnix CoLtd and KEYEASTCoLtd
Assuming the 90 days trading horizon Finetechnix CoLtd is expected to under-perform the KEYEASTCoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Finetechnix CoLtd is 1.22 times less risky than KEYEASTCoLtd. The stock trades about -0.28 of its potential returns per unit of risk. The KEYEASTCoLtd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 437,000 in KEYEASTCoLtd on August 29, 2024 and sell it today you would earn a total of 15,000 from holding KEYEASTCoLtd or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finetechnix CoLtd vs. KEYEASTCoLtd
Performance |
| Timeline |
| Finetechnix CoLtd |
| KEYEASTCoLtd |
Finetechnix CoLtd and KEYEASTCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finetechnix CoLtd and KEYEASTCoLtd
The main advantage of trading using opposite Finetechnix CoLtd and KEYEASTCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finetechnix CoLtd position performs unexpectedly, KEYEASTCoLtd 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 KEYEASTCoLtd will offset losses from the drop in KEYEASTCoLtd's long position.| Finetechnix CoLtd vs. T3 Entertainment Co | Finetechnix CoLtd vs. MediaZen | Finetechnix CoLtd vs. Wireless Power Amplifier | Finetechnix CoLtd vs. Kakao Games Corp |
| KEYEASTCoLtd vs. AfreecaTV Co | KEYEASTCoLtd vs. SS TECH | KEYEASTCoLtd vs. Busan Industrial Co | KEYEASTCoLtd vs. Busan Ind |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |