Correlation Between SK Bioscience and Carriesoft
Can any of the company-specific risk be diversified away by investing in both SK Bioscience and Carriesoft 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 SK Bioscience and Carriesoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and Carriesoft Co, you can compare the effects of market volatilities on SK Bioscience and Carriesoft 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 SK Bioscience with a short position of Carriesoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and Carriesoft.
Diversification Opportunities for SK Bioscience and Carriesoft
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 302440 and Carriesoft is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and Carriesoft Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carriesoft and SK Bioscience 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 SK Bioscience Co are associated (or correlated) with Carriesoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carriesoft has no effect on the direction of SK Bioscience i.e., SK Bioscience and Carriesoft go up and down completely randomly.
Pair Corralation between SK Bioscience and Carriesoft
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the Carriesoft. But the stock apears to be less risky and, when comparing its historical volatility, SK Bioscience Co is 1.37 times less risky than Carriesoft. The stock trades about -0.12 of its potential returns per unit of risk. The Carriesoft Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 433,000 in Carriesoft Co on August 30, 2024 and sell it today you would lose (30,500) from holding Carriesoft Co or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. Carriesoft Co
Performance |
| Timeline |
| SK Bioscience |
| Carriesoft |
SK Bioscience and Carriesoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and Carriesoft
The main advantage of trading using opposite SK Bioscience and Carriesoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience position performs unexpectedly, Carriesoft 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 Carriesoft will offset losses from the drop in Carriesoft's long position.| SK Bioscience vs. Hanmi Semiconductor Co | SK Bioscience vs. Seoul Semiconductor Co | SK Bioscience vs. SCI Information Service | SK Bioscience vs. Nice Information Telecommunication |
| Carriesoft vs. Seohee Construction Co | Carriesoft vs. Han Kook Steel | Carriesoft vs. HJ ShipBuilding Construction | Carriesoft vs. Daekyung Machinery Engineering |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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