Correlation Between Cuckoo Homesys and INTEKPLUS
Can any of the company-specific risk be diversified away by investing in both Cuckoo Homesys and INTEKPLUS 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 Cuckoo Homesys and INTEKPLUS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Homesys Co and INTEKPLUS Co, you can compare the effects of market volatilities on Cuckoo Homesys and INTEKPLUS 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 Cuckoo Homesys with a short position of INTEKPLUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Homesys and INTEKPLUS.
Diversification Opportunities for Cuckoo Homesys and INTEKPLUS
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cuckoo and INTEKPLUS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Homesys Co and INTEKPLUS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEKPLUS and Cuckoo Homesys 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 Cuckoo Homesys Co are associated (or correlated) with INTEKPLUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEKPLUS has no effect on the direction of Cuckoo Homesys i.e., Cuckoo Homesys and INTEKPLUS go up and down completely randomly.
Pair Corralation between Cuckoo Homesys and INTEKPLUS
Assuming the 90 days trading horizon Cuckoo Homesys Co is expected to generate 0.52 times more return on investment than INTEKPLUS. However, Cuckoo Homesys Co is 1.91 times less risky than INTEKPLUS. It trades about -0.17 of its potential returns per unit of risk. INTEKPLUS Co is currently generating about -0.42 per unit of risk. If you would invest 2,250,000 in Cuckoo Homesys Co on August 31, 2024 and sell it today you would lose (135,000) from holding Cuckoo Homesys Co or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cuckoo Homesys Co vs. INTEKPLUS Co
Performance |
| Timeline |
| Cuckoo Homesys |
| INTEKPLUS |
Cuckoo Homesys and INTEKPLUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Homesys and INTEKPLUS
The main advantage of trading using opposite Cuckoo Homesys and INTEKPLUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Homesys position performs unexpectedly, INTEKPLUS 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 INTEKPLUS will offset losses from the drop in INTEKPLUS's long position.| Cuckoo Homesys vs. Busan Industrial Co | Cuckoo Homesys vs. Busan Ind | Cuckoo Homesys vs. Mirae Asset Daewoo | Cuckoo Homesys vs. Finebesteel |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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