Correlation Between IQuest and HyVision System
Can any of the company-specific risk be diversified away by investing in both IQuest and HyVision System 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 IQuest and HyVision System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQuest Co and HyVision System, you can compare the effects of market volatilities on IQuest and HyVision System 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 IQuest with a short position of HyVision System. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQuest and HyVision System.
Diversification Opportunities for IQuest and HyVision System
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between IQuest and HyVision is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding IQuest Co and HyVision System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyVision System and IQuest 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 IQuest Co are associated (or correlated) with HyVision System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyVision System has no effect on the direction of IQuest i.e., IQuest and HyVision System go up and down completely randomly.
Pair Corralation between IQuest and HyVision System
Assuming the 90 days trading horizon IQuest Co is expected to generate 1.05 times more return on investment than HyVision System. However, IQuest is 1.05 times more volatile than HyVision System. It trades about 0.14 of its potential returns per unit of risk. HyVision System is currently generating about -0.09 per unit of risk. If you would invest 223,000 in IQuest Co on August 28, 2024 and sell it today you would earn a total of 21,000 from holding IQuest Co or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQuest Co vs. HyVision System
Performance |
| Timeline |
| IQuest |
| HyVision System |
IQuest and HyVision System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQuest and HyVision System
The main advantage of trading using opposite IQuest and HyVision System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQuest position performs unexpectedly, HyVision System 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 HyVision System will offset losses from the drop in HyVision System's long position.| IQuest vs. Samsung Electronics Co | IQuest vs. Samsung Electronics Co | IQuest vs. LG Energy Solution | IQuest vs. SK Hynix |
| HyVision System vs. Korea Real Estate | HyVision System vs. Korea Ratings Co | HyVision System vs. IQuest Co | HyVision System vs. Wonbang Tech Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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