Correlation Between SEOJEON ELECTRIC and BNK Financial
Can any of the company-specific risk be diversified away by investing in both SEOJEON ELECTRIC and BNK Financial 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 SEOJEON ELECTRIC and BNK Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOJEON ELECTRIC MACHINERY and BNK Financial Group, you can compare the effects of market volatilities on SEOJEON ELECTRIC and BNK Financial 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 SEOJEON ELECTRIC with a short position of BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOJEON ELECTRIC and BNK Financial.
Diversification Opportunities for SEOJEON ELECTRIC and BNK Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SEOJEON and BNK is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SEOJEON ELECTRIC MACHINERY and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY are associated (or correlated) with BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of SEOJEON ELECTRIC i.e., SEOJEON ELECTRIC and BNK Financial go up and down completely randomly.
Pair Corralation between SEOJEON ELECTRIC and BNK Financial
Assuming the 90 days trading horizon SEOJEON ELECTRIC MACHINERY is expected to under-perform the BNK Financial. In addition to that, SEOJEON ELECTRIC is 2.56 times more volatile than BNK Financial Group. It trades about 0.0 of its total potential returns per unit of risk. BNK Financial Group is currently generating about 0.08 per unit of volatility. If you would invest 613,678 in BNK Financial Group on September 3, 2024 and sell it today you would earn a total of 442,322 from holding BNK Financial Group or generate 72.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOJEON ELECTRIC MACHINERY vs. BNK Financial Group
Performance |
| Timeline |
| SEOJEON ELECTRIC MAC |
| BNK Financial Group |
SEOJEON ELECTRIC and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOJEON ELECTRIC and BNK Financial
The main advantage of trading using opposite SEOJEON ELECTRIC and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOJEON ELECTRIC position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| SEOJEON ELECTRIC vs. Daiyang Metal Co | SEOJEON ELECTRIC vs. Samhwa Paint Industrial | SEOJEON ELECTRIC vs. DC Media Co | SEOJEON ELECTRIC vs. Cheryong Industrial CoLtd |
| BNK Financial vs. PI Advanced Materials | BNK Financial vs. SEOJEON ELECTRIC MACHINERY | BNK Financial vs. Top Material Co | BNK Financial vs. Phoenix Materials 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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