Correlation Between An Shin and Gourmet Master
Can any of the company-specific risk be diversified away by investing in both An Shin and Gourmet Master 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 An Shin and Gourmet Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Shin Food Services and Gourmet Master Co, you can compare the effects of market volatilities on An Shin and Gourmet Master 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 An Shin with a short position of Gourmet Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Shin and Gourmet Master.
Diversification Opportunities for An Shin and Gourmet Master
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1259 and Gourmet is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding An Shin Food Services and Gourmet Master Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gourmet Master and An Shin 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 An Shin Food Services are associated (or correlated) with Gourmet Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gourmet Master has no effect on the direction of An Shin i.e., An Shin and Gourmet Master go up and down completely randomly.
Pair Corralation between An Shin and Gourmet Master
Assuming the 90 days trading horizon An Shin Food Services is expected to generate 0.36 times more return on investment than Gourmet Master. However, An Shin Food Services is 2.76 times less risky than Gourmet Master. It trades about -0.03 of its potential returns per unit of risk. Gourmet Master Co is currently generating about -0.03 per unit of risk. If you would invest 7,025 in An Shin Food Services on November 1, 2024 and sell it today you would lose (725.00) from holding An Shin Food Services or give up 10.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Shin Food Services vs. Gourmet Master Co
Performance |
| Timeline |
| An Shin Food |
| Gourmet Master |
An Shin and Gourmet Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Shin and Gourmet Master
The main advantage of trading using opposite An Shin and Gourmet Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Shin position performs unexpectedly, Gourmet Master 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 Gourmet Master will offset losses from the drop in Gourmet Master's long position.| An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. TTFB Co |
| Gourmet Master vs. Wowprime Corp | Gourmet Master vs. President Chain Store | Gourmet Master vs. Eclat Textile Co | Gourmet Master vs. Giant Manufacturing 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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