Correlation Between PH Tech and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both PH Tech and Ewon Comfortech 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 PH Tech and Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Ewon Comfortech Co, you can compare the effects of market volatilities on PH Tech and Ewon Comfortech 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 PH Tech with a short position of Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Ewon Comfortech.
Diversification Opportunities for PH Tech and Ewon Comfortech
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 239890 and Ewon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech and PH Tech 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 PH Tech Co are associated (or correlated) with Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of PH Tech i.e., PH Tech and Ewon Comfortech go up and down completely randomly.
Pair Corralation between PH Tech and Ewon Comfortech
Assuming the 90 days trading horizon PH Tech Co is expected to generate 0.69 times more return on investment than Ewon Comfortech. However, PH Tech Co is 1.46 times less risky than Ewon Comfortech. It trades about -0.03 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.06 per unit of risk. If you would invest 1,720,000 in PH Tech Co on November 4, 2024 and sell it today you would lose (945,000) from holding PH Tech Co or give up 54.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Ewon Comfortech Co
Performance |
| Timeline |
| PH Tech |
| Ewon Comfortech |
PH Tech and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Ewon Comfortech
The main advantage of trading using opposite PH Tech and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| PH Tech vs. Sam Yang Foods | PH Tech vs. Haitai Confectionery Foods | PH Tech vs. BooKook Steel Co | PH Tech vs. Insun Environment New |
| Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Hyundai Motor Co | Ewon Comfortech vs. Hyundai Motor |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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