Correlation Between N2Tech and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both N2Tech and Guyoung Technology 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 N2Tech and Guyoung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N2Tech Co and Guyoung Technology Co, you can compare the effects of market volatilities on N2Tech and Guyoung Technology 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 N2Tech with a short position of Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of N2Tech and Guyoung Technology.
Diversification Opportunities for N2Tech and Guyoung Technology
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between N2Tech and Guyoung is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding N2Tech Co and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung Technology and N2Tech 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 N2Tech Co are associated (or correlated) with Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of N2Tech i.e., N2Tech and Guyoung Technology go up and down completely randomly.
Pair Corralation between N2Tech and Guyoung Technology
Assuming the 90 days trading horizon N2Tech Co is expected to generate 1.9 times more return on investment than Guyoung Technology. However, N2Tech is 1.9 times more volatile than Guyoung Technology Co. It trades about 0.0 of its potential returns per unit of risk. Guyoung Technology Co is currently generating about 0.0 per unit of risk. If you would invest 69,200 in N2Tech Co on October 27, 2024 and sell it today you would lose (25,800) from holding N2Tech Co or give up 37.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
N2Tech Co vs. Guyoung Technology Co
Performance |
| Timeline |
| N2Tech |
| Guyoung Technology |
N2Tech and Guyoung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N2Tech and Guyoung Technology
The main advantage of trading using opposite N2Tech and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N2Tech position performs unexpectedly, Guyoung Technology 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.| N2Tech vs. EBEST Investment Securities | N2Tech vs. Eagon Industrial Co | N2Tech vs. Pureun Mutual Savings | N2Tech vs. Korea Industrial Co |
| Guyoung Technology vs. Jahwa Electronics Co | Guyoung Technology vs. Shinil Electronics Co | Guyoung Technology vs. HB Technology TD | Guyoung Technology vs. Dong A Steel Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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