Correlation Between Cuckoo Homesys and CU Tech
Can any of the company-specific risk be diversified away by investing in both Cuckoo Homesys and CU Tech 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 CU Tech 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 CU Tech Corp, you can compare the effects of market volatilities on Cuckoo Homesys and CU Tech 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 CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Homesys and CU Tech.
Diversification Opportunities for Cuckoo Homesys and CU Tech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cuckoo and 376290 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Homesys Co and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech Corp 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 CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Cuckoo Homesys i.e., Cuckoo Homesys and CU Tech go up and down completely randomly.
Pair Corralation between Cuckoo Homesys and CU Tech
Assuming the 90 days trading horizon Cuckoo Homesys is expected to generate 1.62 times less return on investment than CU Tech. But when comparing it to its historical volatility, Cuckoo Homesys Co is 1.3 times less risky than CU Tech. It trades about 0.34 of its potential returns per unit of risk. CU Tech Corp is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 295,000 in CU Tech Corp on November 27, 2024 and sell it today you would earn a total of 35,000 from holding CU Tech Corp or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Homesys Co vs. CU Tech Corp
Performance |
| Timeline |
| Cuckoo Homesys |
| CU Tech Corp |
Cuckoo Homesys and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Homesys and CU Tech
The main advantage of trading using opposite Cuckoo Homesys and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Homesys position performs unexpectedly, CU Tech 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 CU Tech will offset losses from the drop in CU Tech's long position.| Cuckoo Homesys vs. Koryo Credit Information | Cuckoo Homesys vs. Pureun Mutual Savings | Cuckoo Homesys vs. Seoul Electronics Telecom | Cuckoo Homesys vs. Vissem Electronics Co |
| CU Tech vs. Sangsin Energy Display | CU Tech vs. Grand Korea Leisure | CU Tech vs. PLAYWITH | CU Tech vs. Korea Computer |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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