Correlation Between Echomarketing CoLtd and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Echomarketing CoLtd and Myoung Shin 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 Echomarketing CoLtd and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Echomarketing CoLtd and Myoung Shin Industrial, you can compare the effects of market volatilities on Echomarketing CoLtd and Myoung Shin 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 Echomarketing CoLtd with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Echomarketing CoLtd and Myoung Shin.
Diversification Opportunities for Echomarketing CoLtd and Myoung Shin
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Echomarketing and Myoung is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Echomarketing CoLtd and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Echomarketing CoLtd 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 Echomarketing CoLtd are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Echomarketing CoLtd i.e., Echomarketing CoLtd and Myoung Shin go up and down completely randomly.
Pair Corralation between Echomarketing CoLtd and Myoung Shin
Assuming the 90 days trading horizon Echomarketing CoLtd is expected to generate 1.09 times more return on investment than Myoung Shin. However, Echomarketing CoLtd is 1.09 times more volatile than Myoung Shin Industrial. It trades about -0.08 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.16 per unit of risk. If you would invest 1,057,000 in Echomarketing CoLtd on September 1, 2024 and sell it today you would lose (100,000) from holding Echomarketing CoLtd or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Echomarketing CoLtd vs. Myoung Shin Industrial
Performance |
| Timeline |
| Echomarketing CoLtd |
| Myoung Shin Industrial |
Echomarketing CoLtd and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Echomarketing CoLtd and Myoung Shin
The main advantage of trading using opposite Echomarketing CoLtd and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Echomarketing CoLtd position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Echomarketing CoLtd vs. AfreecaTV Co | Echomarketing CoLtd vs. Seegene | Echomarketing CoLtd vs. SS TECH | Echomarketing CoLtd vs. Busan Industrial Co |
| Myoung Shin vs. KB Financial Group | Myoung Shin vs. Dongbang Ship Machinery | Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |