Correlation Between ReaLy Development and Koge Micro
Can any of the company-specific risk be diversified away by investing in both ReaLy Development and Koge Micro 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 ReaLy Development and Koge Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReaLy Development Construction and Koge Micro Tech, you can compare the effects of market volatilities on ReaLy Development and Koge Micro 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 ReaLy Development with a short position of Koge Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReaLy Development and Koge Micro.
Diversification Opportunities for ReaLy Development and Koge Micro
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ReaLy and Koge is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ReaLy Development Construction and Koge Micro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koge Micro Tech and ReaLy Development 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 ReaLy Development Construction are associated (or correlated) with Koge Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koge Micro Tech has no effect on the direction of ReaLy Development i.e., ReaLy Development and Koge Micro go up and down completely randomly.
Pair Corralation between ReaLy Development and Koge Micro
Assuming the 90 days trading horizon ReaLy Development Construction is expected to generate 1.75 times more return on investment than Koge Micro. However, ReaLy Development is 1.75 times more volatile than Koge Micro Tech. It trades about 0.1 of its potential returns per unit of risk. Koge Micro Tech is currently generating about -0.01 per unit of risk. If you would invest 2,320 in ReaLy Development Construction on September 12, 2024 and sell it today you would earn a total of 1,750 from holding ReaLy Development Construction or generate 75.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReaLy Development Construction vs. Koge Micro Tech
Performance |
| Timeline |
| ReaLy Development |
| Koge Micro Tech |
ReaLy Development and Koge Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReaLy Development and Koge Micro
The main advantage of trading using opposite ReaLy Development and Koge Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReaLy Development position performs unexpectedly, Koge Micro 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 Koge Micro will offset losses from the drop in Koge Micro's long position.| ReaLy Development vs. Sino Horizon Holdings | ReaLy Development vs. Run Long Construction | ReaLy Development vs. Chong Hong Construction | ReaLy Development vs. JSL Construction Development |
| Koge Micro vs. New Asia Construction | Koge Micro vs. Huang Hsiang Construction | Koge Micro vs. X Legend Entertainment Co | Koge Micro vs. ReaLy Development Construction |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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