Correlation Between ASTORY CoLtd and I-Components
Can any of the company-specific risk be diversified away by investing in both ASTORY CoLtd and I-Components 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 ASTORY CoLtd and I-Components into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTORY CoLtd and i Components Co, you can compare the effects of market volatilities on ASTORY CoLtd and I-Components 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 ASTORY CoLtd with a short position of I-Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORY CoLtd and I-Components.
Diversification Opportunities for ASTORY CoLtd and I-Components
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASTORY and I-Components is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ASTORY CoLtd and i Components Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i Components and ASTORY 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 ASTORY CoLtd are associated (or correlated) with I-Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i Components has no effect on the direction of ASTORY CoLtd i.e., ASTORY CoLtd and I-Components go up and down completely randomly.
Pair Corralation between ASTORY CoLtd and I-Components
Assuming the 90 days trading horizon ASTORY CoLtd is expected to generate 1.13 times more return on investment than I-Components. However, ASTORY CoLtd is 1.13 times more volatile than i Components Co. It trades about -0.07 of its potential returns per unit of risk. i Components Co is currently generating about -0.1 per unit of risk. If you would invest 1,380,000 in ASTORY CoLtd on September 25, 2024 and sell it today you would lose (558,000) from holding ASTORY CoLtd or give up 40.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
ASTORY CoLtd vs. i Components Co
Performance |
| Timeline |
| ASTORY CoLtd |
| i Components |
ASTORY CoLtd and I-Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTORY CoLtd and I-Components
The main advantage of trading using opposite ASTORY CoLtd and I-Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTORY CoLtd position performs unexpectedly, I-Components 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 I-Components will offset losses from the drop in I-Components' long position.| ASTORY CoLtd vs. Cube Entertainment | ASTORY CoLtd vs. PlayD Co | ASTORY CoLtd vs. Neungyule Education | ASTORY CoLtd vs. Korea Investment Holdings |
| I-Components vs. Samsung Electronics Co | I-Components vs. Samsung Electronics Co | I-Components vs. LG Energy Solution | I-Components vs. SK Hynix |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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