Correlation Between Amogreentech CoLtd and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Amogreentech CoLtd and Bosung Power 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 CoLtd and Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech CoLtd and Bosung Power Technology, you can compare the effects of market volatilities on Amogreentech CoLtd and Bosung Power 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 CoLtd with a short position of Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech CoLtd and Bosung Power.
Diversification Opportunities for Amogreentech CoLtd and Bosung Power
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amogreentech and Bosung is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech CoLtd and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology and Amogreentech 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 Amogreentech CoLtd are associated (or correlated) with Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Amogreentech CoLtd i.e., Amogreentech CoLtd and Bosung Power go up and down completely randomly.
Pair Corralation between Amogreentech CoLtd and Bosung Power
Assuming the 90 days trading horizon Amogreentech CoLtd is expected to generate 1.35 times less return on investment than Bosung Power. In addition to that, Amogreentech CoLtd is 1.12 times more volatile than Bosung Power Technology. It trades about 0.19 of its total potential returns per unit of risk. Bosung Power Technology is currently generating about 0.29 per unit of volatility. If you would invest 229,000 in Bosung Power Technology on November 8, 2024 and sell it today you would earn a total of 65,000 from holding Bosung Power Technology or generate 28.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Amogreentech CoLtd vs. Bosung Power Technology
Performance |
| Timeline |
| Amogreentech CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bosung Power Technology |
Amogreentech CoLtd and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech CoLtd and Bosung Power
The main advantage of trading using opposite Amogreentech CoLtd and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech CoLtd position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Amogreentech CoLtd vs. Jeju Air Co | Amogreentech CoLtd vs. Kukil Metal Co | Amogreentech CoLtd vs. Korea Air Svc | Amogreentech CoLtd vs. Lee Ku Industrial |
| Bosung Power vs. KMH Hitech Co | Bosung Power vs. LAKE MATERIALS LTD | Bosung Power vs. SK IE Technology | Bosung Power vs. SEOWONINTECHCoLtd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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