Correlation Between Carriesoft and MS Autotech
Can any of the company-specific risk be diversified away by investing in both Carriesoft and MS Autotech 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 Carriesoft and MS Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriesoft Co and MS Autotech CoLtd, you can compare the effects of market volatilities on Carriesoft and MS Autotech 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 Carriesoft with a short position of MS Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriesoft and MS Autotech.
Diversification Opportunities for Carriesoft and MS Autotech
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carriesoft and 123040 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Carriesoft Co and MS Autotech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MS Autotech CoLtd and Carriesoft 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 Carriesoft Co are associated (or correlated) with MS Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MS Autotech CoLtd has no effect on the direction of Carriesoft i.e., Carriesoft and MS Autotech go up and down completely randomly.
Pair Corralation between Carriesoft and MS Autotech
Assuming the 90 days trading horizon Carriesoft Co is expected to generate 0.66 times more return on investment than MS Autotech. However, Carriesoft Co is 1.52 times less risky than MS Autotech. It trades about 0.5 of its potential returns per unit of risk. MS Autotech CoLtd is currently generating about 0.24 per unit of risk. If you would invest 498,000 in Carriesoft Co on November 27, 2024 and sell it today you would earn a total of 125,000 from holding Carriesoft Co or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriesoft Co vs. MS Autotech CoLtd
Performance |
| Timeline |
| Carriesoft |
| MS Autotech CoLtd |
Carriesoft and MS Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriesoft and MS Autotech
The main advantage of trading using opposite Carriesoft and MS Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriesoft position performs unexpectedly, MS Autotech 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 MS Autotech will offset losses from the drop in MS Autotech's long position.| Carriesoft vs. Choil Aluminum | Carriesoft vs. Seoyon Topmetal Co | Carriesoft vs. Kukil Metal Co | Carriesoft vs. Jahwa Electronics Co |
| MS Autotech vs. Samsung Electronics Co | MS Autotech vs. Samsung Electronics Co | MS Autotech vs. Naver | MS Autotech vs. SK Hynix |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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