Correlation Between Incar Financial and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both Incar Financial and SeAH Bestee 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 Incar Financial and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and SeAH Bestee, you can compare the effects of market volatilities on Incar Financial and SeAH Bestee 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 Incar Financial with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and SeAH Bestee.
Diversification Opportunities for Incar Financial and SeAH Bestee
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Incar and SeAH is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and Incar Financial 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 Incar Financial Service are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of Incar Financial i.e., Incar Financial and SeAH Bestee go up and down completely randomly.
Pair Corralation between Incar Financial and SeAH Bestee
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 1.12 times more return on investment than SeAH Bestee. However, Incar Financial is 1.12 times more volatile than SeAH Bestee. It trades about 0.1 of its potential returns per unit of risk. SeAH Bestee is currently generating about 0.0 per unit of risk. If you would invest 176,301 in Incar Financial Service on November 27, 2024 and sell it today you would earn a total of 414,699 from holding Incar Financial Service or generate 235.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.81% |
| Values | Daily Returns |
Incar Financial Service vs. SeAH Bestee
Performance |
| Timeline |
| Incar Financial Service |
| SeAH Bestee |
Incar Financial and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and SeAH Bestee
The main advantage of trading using opposite Incar Financial and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| Incar Financial vs. Hyundai Green Food | Incar Financial vs. Maeil Holdings Co | Incar Financial vs. Innowireless Co | Incar Financial vs. Hankook Furniture Co |
| SeAH Bestee vs. Hyundai Industrial Co | SeAH Bestee vs. CKH Food Health | SeAH Bestee vs. Kyeryong Construction Industrial | SeAH Bestee vs. Chorokbaem Healthcare 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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