Correlation Between Cuckoo Electronics and Ajusteel
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and Ajusteel 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 Cuckoo Electronics and Ajusteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and Ajusteel Co, you can compare the effects of market volatilities on Cuckoo Electronics and Ajusteel 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 Cuckoo Electronics with a short position of Ajusteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and Ajusteel.
Diversification Opportunities for Cuckoo Electronics and Ajusteel
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cuckoo and Ajusteel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and Ajusteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajusteel and Cuckoo Electronics 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 Cuckoo Electronics Co are associated (or correlated) with Ajusteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajusteel has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and Ajusteel go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and Ajusteel
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to under-perform the Ajusteel. But the stock apears to be less risky and, when comparing its historical volatility, Cuckoo Electronics Co is 1.96 times less risky than Ajusteel. The stock trades about -0.21 of its potential returns per unit of risk. The Ajusteel Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 385,500 in Ajusteel Co on November 27, 2024 and sell it today you would earn a total of 27,500 from holding Ajusteel Co or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. Ajusteel Co
Performance |
| Timeline |
| Cuckoo Electronics |
| Ajusteel |
Cuckoo Electronics and Ajusteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and Ajusteel
The main advantage of trading using opposite Cuckoo Electronics and Ajusteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, Ajusteel 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 Ajusteel will offset losses from the drop in Ajusteel's long position.| Cuckoo Electronics vs. LB Investment | Cuckoo Electronics vs. KTB Investment Securities | Cuckoo Electronics vs. Sangsangin Investment Securities | Cuckoo Electronics vs. SV Investment |
| Ajusteel vs. DONGKUK TED METAL | Ajusteel vs. Innowireless Co | Ajusteel vs. Dongil Metal Co | Ajusteel vs. Shinhan Inverse Copper |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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