Correlation Between Incar Financial and PH Tech
Can any of the company-specific risk be diversified away by investing in both Incar Financial and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Incar Financial and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and PH Tech.
Diversification Opportunities for Incar Financial and PH Tech
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Incar and 239890 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Incar Financial i.e., Incar Financial and PH Tech go up and down completely randomly.
Pair Corralation between Incar Financial and PH Tech
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 0.97 times more return on investment than PH Tech. However, Incar Financial Service is 1.03 times less risky than PH Tech. It trades about 0.11 of its potential returns per unit of risk. PH Tech Co is currently generating about -0.01 per unit of risk. If you would invest 126,442 in Incar Financial Service on October 11, 2024 and sell it today you would earn a total of 397,558 from holding Incar Financial Service or generate 314.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.92% |
| Values | Daily Returns |
Incar Financial Service vs. PH Tech Co
Performance |
| Timeline |
| Incar Financial Service |
| PH Tech |
Incar Financial and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and PH Tech
The main advantage of trading using opposite Incar Financial and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Incar Financial vs. Nice Information Telecommunication | Incar Financial vs. Shinsegae Food | Incar Financial vs. Sungchang Autotech Co | Incar Financial vs. Samlip General Foods |
| PH Tech vs. Incar Financial Service | PH Tech vs. Korean Reinsurance Co | PH Tech vs. Industrial Bank | PH Tech vs. Lotte Non Life Insurance |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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