Correlation Between CS BEARING and COWINTECH
Can any of the company-specific risk be diversified away by investing in both CS BEARING and COWINTECH 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 CS BEARING and COWINTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS BEARING CoLtd and COWINTECH Co, you can compare the effects of market volatilities on CS BEARING and COWINTECH 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 CS BEARING with a short position of COWINTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS BEARING and COWINTECH.
Diversification Opportunities for CS BEARING and COWINTECH
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 297090 and COWINTECH is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CS BEARING CoLtd and COWINTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWINTECH and CS BEARING 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 CS BEARING CoLtd are associated (or correlated) with COWINTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWINTECH has no effect on the direction of CS BEARING i.e., CS BEARING and COWINTECH go up and down completely randomly.
Pair Corralation between CS BEARING and COWINTECH
Assuming the 90 days trading horizon CS BEARING CoLtd is expected to under-perform the COWINTECH. But the stock apears to be less risky and, when comparing its historical volatility, CS BEARING CoLtd is 1.04 times less risky than COWINTECH. The stock trades about -0.14 of its potential returns per unit of risk. The COWINTECH Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,190,000 in COWINTECH Co on August 25, 2024 and sell it today you would lose (776,000) from holding COWINTECH Co or give up 35.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
CS BEARING CoLtd vs. COWINTECH Co
Performance |
| Timeline |
| CS BEARING CoLtd |
| COWINTECH |
CS BEARING and COWINTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS BEARING and COWINTECH
The main advantage of trading using opposite CS BEARING and COWINTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS BEARING position performs unexpectedly, COWINTECH 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 COWINTECH will offset losses from the drop in COWINTECH's long position.| CS BEARING vs. LG Chemicals | CS BEARING vs. Ni Steel | CS BEARING vs. DONGKUK STEEL MILL | CS BEARING vs. Hanjin Transportation Co |
| COWINTECH vs. Korea Alcohol Industrial | COWINTECH vs. Daiyang Metal Co | COWINTECH vs. Namhwa Industrial Co | COWINTECH vs. Kbi Metal 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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