Correlation Between Fine Besteel and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Wireless 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 Fine Besteel and Wireless Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Wireless Power Amplifier, you can compare the effects of market volatilities on Fine Besteel and Wireless 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 Fine Besteel with a short position of Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Wireless Power.
Diversification Opportunities for Fine Besteel and Wireless Power
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fine and Wireless is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Fine Besteel i.e., Fine Besteel and Wireless Power go up and down completely randomly.
Pair Corralation between Fine Besteel and Wireless Power
Assuming the 90 days trading horizon Fine Besteel Co is expected to under-perform the Wireless Power. But the stock apears to be less risky and, when comparing its historical volatility, Fine Besteel Co is 1.27 times less risky than Wireless Power. The stock trades about -0.03 of its potential returns per unit of risk. The Wireless Power Amplifier is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 308,500 in Wireless Power Amplifier on November 9, 2024 and sell it today you would earn a total of 216,500 from holding Wireless Power Amplifier or generate 70.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Wireless Power Amplifier
Performance |
| Timeline |
| Fine Besteel |
| Wireless Power Amplifier |
Fine Besteel and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Wireless Power
The main advantage of trading using opposite Fine Besteel and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Wireless 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Fine Besteel vs. Vina Technology Co | Fine Besteel vs. Digital Imaging Technology | Fine Besteel vs. HB Technology TD | Fine Besteel vs. Hannong Chemicals |
| Wireless Power vs. Samyoung Electronics Co | Wireless Power vs. UJU Electronics Co | Wireless Power vs. Daeduck Electronics Co | Wireless Power vs. Samlip General Foods |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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