Correlation Between BGF Retail and HyVision System
Can any of the company-specific risk be diversified away by investing in both BGF Retail 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 BGF Retail and HyVision System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and HyVision System, you can compare the effects of market volatilities on BGF Retail 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 BGF Retail with a short position of HyVision System. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and HyVision System.
Diversification Opportunities for BGF Retail and HyVision System
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGF and HyVision is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and HyVision System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyVision System and BGF Retail 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 BGF Retail 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 BGF Retail i.e., BGF Retail and HyVision System go up and down completely randomly.
Pair Corralation between BGF Retail and HyVision System
Assuming the 90 days trading horizon BGF Retail is expected to generate 20.04 times less return on investment than HyVision System. But when comparing it to its historical volatility, BGF Retail Co is 1.98 times less risky than HyVision System. It trades about 0.02 of its potential returns per unit of risk. HyVision System is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,532,000 in HyVision System on September 14, 2024 and sell it today you would earn a total of 189,000 from holding HyVision System or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. HyVision System
Performance |
| Timeline |
| BGF Retail |
| HyVision System |
BGF Retail and HyVision System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and HyVision System
The main advantage of trading using opposite BGF Retail and HyVision System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail 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.| BGF Retail vs. Korea New Network | BGF Retail vs. ICD Co | BGF Retail vs. DYPNF CoLtd | BGF Retail vs. Solution Advanced Technology |
| HyVision System vs. BGF Retail Co | HyVision System vs. DB Insurance Co | HyVision System vs. Lotte Data Communication | HyVision System vs. Kisan Telecom 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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