Correlation Between Finebesteel and FLITTO
Can any of the company-specific risk be diversified away by investing in both Finebesteel and FLITTO 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 Finebesteel and FLITTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finebesteel and FLITTO Inc, you can compare the effects of market volatilities on Finebesteel and FLITTO 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 Finebesteel with a short position of FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finebesteel and FLITTO.
Diversification Opportunities for Finebesteel and FLITTO
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finebesteel and FLITTO is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Finebesteel and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc and Finebesteel 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 Finebesteel are associated (or correlated) with FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of Finebesteel i.e., Finebesteel and FLITTO go up and down completely randomly.
Pair Corralation between Finebesteel and FLITTO
Assuming the 90 days trading horizon Finebesteel is expected to under-perform the FLITTO. But the stock apears to be less risky and, when comparing its historical volatility, Finebesteel is 1.87 times less risky than FLITTO. The stock trades about -0.04 of its potential returns per unit of risk. The FLITTO Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,410,000 in FLITTO Inc on September 12, 2024 and sell it today you would lose (716,000) from holding FLITTO Inc or give up 29.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finebesteel vs. FLITTO Inc
Performance |
| Timeline |
| Finebesteel |
| FLITTO Inc |
Finebesteel and FLITTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finebesteel and FLITTO
The main advantage of trading using opposite Finebesteel and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finebesteel position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.| Finebesteel vs. Dong Il Steel | Finebesteel vs. Seah Steel Corp | Finebesteel vs. Ni Steel | Finebesteel vs. Korea Steel Co |
| FLITTO vs. SK Chemicals Co | FLITTO vs. BooKook Steel Co | FLITTO vs. Hankuk Steel Wire | FLITTO vs. Finebesteel |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance |