Correlation Between CG Hi and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both CG Hi and SEOJEON ELECTRIC 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 CG Hi and SEOJEON ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CG Hi Tech and SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on CG Hi and SEOJEON ELECTRIC 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 CG Hi with a short position of SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CG Hi and SEOJEON ELECTRIC.
Diversification Opportunities for CG Hi and SEOJEON ELECTRIC
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 264660 and SEOJEON is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CG Hi Tech and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC and CG Hi 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 CG Hi Tech are associated (or correlated) with SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of CG Hi i.e., CG Hi and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between CG Hi and SEOJEON ELECTRIC
Assuming the 90 days trading horizon CG Hi is expected to generate 1.03 times less return on investment than SEOJEON ELECTRIC. But when comparing it to its historical volatility, CG Hi Tech is 1.05 times less risky than SEOJEON ELECTRIC. It trades about 0.22 of its potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 402,000 in SEOJEON ELECTRIC MACHINERY on November 7, 2024 and sell it today you would earn a total of 72,500 from holding SEOJEON ELECTRIC MACHINERY or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CG Hi Tech vs. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
| CG Hi Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SEOJEON ELECTRIC MAC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CG Hi and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CG Hi and SEOJEON ELECTRIC
The main advantage of trading using opposite CG Hi and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CG Hi position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| CG Hi vs. Global Standard Technology | CG Hi vs. Guyoung Technology Co | CG Hi vs. Settlebank | CG Hi vs. SK IE Technology |
| SEOJEON ELECTRIC vs. Koh Young Technology | SEOJEON ELECTRIC vs. Hana Financial | SEOJEON ELECTRIC vs. Samsung Securities |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |