Correlation Between ASTORY CoLtd and Neo Cremar
Can any of the company-specific risk be diversified away by investing in both ASTORY CoLtd and Neo Cremar 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 Neo Cremar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTORY CoLtd and Neo Cremar Co, you can compare the effects of market volatilities on ASTORY CoLtd and Neo Cremar 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 Neo Cremar. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTORY CoLtd and Neo Cremar.
Diversification Opportunities for ASTORY CoLtd and Neo Cremar
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASTORY and Neo is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ASTORY CoLtd and Neo Cremar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Cremar 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 Neo Cremar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Cremar has no effect on the direction of ASTORY CoLtd i.e., ASTORY CoLtd and Neo Cremar go up and down completely randomly.
Pair Corralation between ASTORY CoLtd and Neo Cremar
Assuming the 90 days trading horizon ASTORY CoLtd is expected to under-perform the Neo Cremar. In addition to that, ASTORY CoLtd is 1.0 times more volatile than Neo Cremar Co. It trades about -0.09 of its total potential returns per unit of risk. Neo Cremar Co is currently generating about -0.02 per unit of volatility. If you would invest 945,000 in Neo Cremar Co on November 2, 2024 and sell it today you would lose (279,000) from holding Neo Cremar Co or give up 29.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASTORY CoLtd vs. Neo Cremar Co
Performance |
| Timeline |
| ASTORY CoLtd |
| Neo Cremar |
ASTORY CoLtd and Neo Cremar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTORY CoLtd and Neo Cremar
The main advantage of trading using opposite ASTORY CoLtd and Neo Cremar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTORY CoLtd position performs unexpectedly, Neo Cremar 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 Neo Cremar will offset losses from the drop in Neo Cremar's long position.| ASTORY CoLtd vs. Cube Entertainment | ASTORY CoLtd vs. Samsung Publishing Co | ASTORY CoLtd vs. Husteel | ASTORY CoLtd vs. SM Entertainment Co |
| Neo Cremar vs. Samsung Life Insurance | Neo Cremar vs. Sejong Telecom | Neo Cremar vs. SK Telecom Co | Neo Cremar vs. Settlebank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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