Correlation Between Chorokbaem Healthcare and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare and EBEST Investment 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 Chorokbaem Healthcare and EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and EBEST Investment Securities, you can compare the effects of market volatilities on Chorokbaem Healthcare and EBEST Investment 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 Chorokbaem Healthcare with a short position of EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and EBEST Investment.
Diversification Opportunities for Chorokbaem Healthcare and EBEST Investment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chorokbaem and EBEST is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec and Chorokbaem Healthcare 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 Chorokbaem Healthcare Co are associated (or correlated) with EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and EBEST Investment go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and EBEST Investment
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to generate 1.41 times more return on investment than EBEST Investment. However, Chorokbaem Healthcare is 1.41 times more volatile than EBEST Investment Securities. It trades about -0.22 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.35 per unit of risk. If you would invest 34,200 in Chorokbaem Healthcare Co on September 1, 2024 and sell it today you would lose (3,200) from holding Chorokbaem Healthcare Co or give up 9.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. EBEST Investment Securities
Performance |
| Timeline |
| Chorokbaem Healthcare |
| EBEST Investment Sec |
Chorokbaem Healthcare and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and EBEST Investment
The main advantage of trading using opposite Chorokbaem Healthcare and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Chorokbaem Healthcare vs. Dong A Steel Technology | Chorokbaem Healthcare vs. Hankook Steel Co | Chorokbaem Healthcare vs. J Steel Co | Chorokbaem Healthcare vs. Korea Steel Co |
| EBEST Investment vs. DB Financial Investment | EBEST Investment vs. Lindeman Asia Investment | EBEST Investment vs. BGF Retail Co | EBEST Investment vs. Jin Air 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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