Correlation Between FoodNamoo and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and Eugene Technology 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 FoodNamoo and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and Eugene Technology CoLtd, you can compare the effects of market volatilities on FoodNamoo and Eugene Technology 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 FoodNamoo with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and Eugene Technology.
Diversification Opportunities for FoodNamoo and Eugene Technology
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FoodNamoo and Eugene is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and FoodNamoo 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 FoodNamoo are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of FoodNamoo i.e., FoodNamoo and Eugene Technology go up and down completely randomly.
Pair Corralation between FoodNamoo and Eugene Technology
Assuming the 90 days trading horizon FoodNamoo is expected to generate 0.77 times more return on investment than Eugene Technology. However, FoodNamoo is 1.31 times less risky than Eugene Technology. It trades about -0.15 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about -0.15 per unit of risk. If you would invest 316,500 in FoodNamoo on September 25, 2024 and sell it today you would lose (28,500) from holding FoodNamoo or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FoodNamoo vs. Eugene Technology CoLtd
Performance |
| Timeline |
| FoodNamoo |
| Eugene Technology CoLtd |
FoodNamoo and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and Eugene Technology
The main advantage of trading using opposite FoodNamoo and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| FoodNamoo vs. Woori Technology | FoodNamoo vs. Hwangkum Steel Technology | FoodNamoo vs. Daishin Information Communications | FoodNamoo vs. Kisan Telecom Co |
| Eugene Technology vs. FoodNamoo | Eugene Technology vs. Shinsegae Information Communication | Eugene Technology vs. Nable Communications | Eugene Technology vs. Innowireless 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 CEOs Directory module to screen CEOs from public companies around the world.
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