Correlation Between Air Busan and E Investment
Can any of the company-specific risk be diversified away by investing in both Air Busan and E Investment 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 Air Busan and E Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Busan Co and E Investment Development, you can compare the effects of market volatilities on Air Busan and E Investment 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 Air Busan with a short position of E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Busan and E Investment.
Diversification Opportunities for Air Busan and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Busan Co and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development and Air Busan 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 Air Busan Co are associated (or correlated) with E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of Air Busan i.e., Air Busan and E Investment go up and down completely randomly.
Pair Corralation between Air Busan and E Investment
If you would invest 226,500 in Air Busan Co on November 3, 2024 and sell it today you would earn a total of 13,000 from holding Air Busan Co or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Air Busan Co vs. E Investment Development
Performance |
| Timeline |
| Air Busan |
| E Investment Development |
Air Busan and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Busan and E Investment
The main advantage of trading using opposite Air Busan and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Busan position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| Air Busan vs. Insun Environment New | Air Busan vs. BooKook Steel Co | Air Busan vs. Moonbae Steel | Air Busan vs. Nable Communications |
| E Investment vs. Seoul Food Industrial | E Investment vs. Vissem Electronics Co | E Investment vs. Daeduck Electronics Co | E Investment vs. Seoul Electronics Telecom |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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