Correlation Between Amogreentech and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Amogreentech and Puloon Technology 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 Amogreentech and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and Puloon Technology, you can compare the effects of market volatilities on Amogreentech and Puloon Technology 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 Amogreentech with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and Puloon Technology.
Diversification Opportunities for Amogreentech and Puloon Technology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amogreentech and Puloon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Amogreentech 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 Amogreentech Co are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Amogreentech i.e., Amogreentech and Puloon Technology go up and down completely randomly.
Pair Corralation between Amogreentech and Puloon Technology
Assuming the 90 days trading horizon Amogreentech Co is expected to under-perform the Puloon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Amogreentech Co is 1.08 times less risky than Puloon Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Puloon Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 694,199 in Puloon Technology on September 2, 2024 and sell it today you would lose (20,199) from holding Puloon Technology or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. Puloon Technology
Performance |
| Timeline |
| Amogreentech |
| Puloon Technology |
Amogreentech and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and Puloon Technology
The main advantage of trading using opposite Amogreentech and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.The idea behind Amogreentech Co and Puloon Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Puloon Technology vs. Dongsin Engineering Construction | Puloon Technology vs. Doosan Fuel Cell | Puloon Technology vs. Daishin Balance 1 | Puloon Technology vs. Total Soft Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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