Correlation Between ASTORY CoLtd and Itcen
Can any of the company-specific risk be diversified away by investing in both ASTORY CoLtd and Itcen 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 Itcen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTORY CoLtd and Itcen Co, you can compare the effects of market volatilities on ASTORY CoLtd and Itcen 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 Itcen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORY CoLtd and Itcen.
Diversification Opportunities for ASTORY CoLtd and Itcen
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTORY and Itcen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ASTORY CoLtd and Itcen Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itcen 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 Itcen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itcen has no effect on the direction of ASTORY CoLtd i.e., ASTORY CoLtd and Itcen go up and down completely randomly.
Pair Corralation between ASTORY CoLtd and Itcen
Assuming the 90 days trading horizon ASTORY CoLtd is expected to under-perform the Itcen. But the stock apears to be less risky and, when comparing its historical volatility, ASTORY CoLtd is 1.31 times less risky than Itcen. The stock trades about -0.06 of its potential returns per unit of risk. The Itcen Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 524,000 in Itcen Co on October 14, 2024 and sell it today you would earn a total of 12,000 from holding Itcen Co or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTORY CoLtd vs. Itcen Co
Performance |
| Timeline |
| ASTORY CoLtd |
| Itcen |
ASTORY CoLtd and Itcen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTORY CoLtd and Itcen
The main advantage of trading using opposite ASTORY CoLtd and Itcen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTORY CoLtd position performs unexpectedly, Itcen 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 Itcen will offset losses from the drop in Itcen's long position.| ASTORY CoLtd vs. Dongbu Insurance Co | ASTORY CoLtd vs. KB Financial Group | ASTORY CoLtd vs. Woori Financial Group | ASTORY CoLtd vs. Sempio Foods Co |
| Itcen vs. Pan Entertainment Co | Itcen vs. SAMG Entertainment Co | Itcen vs. Alton Sports CoLtd | Itcen vs. Daou Data Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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