Correlation Between PH Tech and Amogreentech
Can any of the company-specific risk be diversified away by investing in both PH Tech and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on PH Tech and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Amogreentech.
Diversification Opportunities for PH Tech and Amogreentech
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 239890 and Amogreentech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of PH Tech i.e., PH Tech and Amogreentech go up and down completely randomly.
Pair Corralation between PH Tech and Amogreentech
Assuming the 90 days trading horizon PH Tech Co is expected to generate 0.81 times more return on investment than Amogreentech. However, PH Tech Co is 1.23 times less risky than Amogreentech. It trades about 0.19 of its potential returns per unit of risk. Amogreentech Co is currently generating about 0.07 per unit of risk. If you would invest 686,000 in PH Tech Co on August 25, 2024 and sell it today you would earn a total of 103,000 from holding PH Tech Co or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Amogreentech Co
Performance |
| Timeline |
| PH Tech |
| Amogreentech |
PH Tech and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Amogreentech
The main advantage of trading using opposite PH Tech and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| PH Tech vs. Konan Technology | PH Tech vs. Nable Communications | PH Tech vs. FNSTech Co | PH Tech vs. POSCO M TECH Co |
| Amogreentech vs. SBI Investment KOREA | Amogreentech vs. Asia Technology Co | Amogreentech vs. HB Technology TD | Amogreentech vs. Lindeman Asia Investment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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