Correlation Between Wireless Power and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Showbox Corp 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 Wireless Power and Showbox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and Showbox Corp, you can compare the effects of market volatilities on Wireless Power and Showbox Corp 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 Wireless Power with a short position of Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Showbox Corp.
Diversification Opportunities for Wireless Power and Showbox Corp
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wireless and Showbox is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of Wireless Power i.e., Wireless Power and Showbox Corp go up and down completely randomly.
Pair Corralation between Wireless Power and Showbox Corp
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 0.68 times more return on investment than Showbox Corp. However, Wireless Power Amplifier is 1.46 times less risky than Showbox Corp. It trades about 0.1 of its potential returns per unit of risk. Showbox Corp is currently generating about -0.09 per unit of risk. If you would invest 229,500 in Wireless Power Amplifier on September 13, 2024 and sell it today you would earn a total of 10,500 from holding Wireless Power Amplifier or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Showbox Corp
Performance |
| Timeline |
| Wireless Power Amplifier |
| Showbox Corp |
Wireless Power and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Showbox Corp
The main advantage of trading using opposite Wireless Power and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| Wireless Power vs. Daejoo Electronic Materials | Wireless Power vs. Interflex Co | Wireless Power vs. Solution Advanced Technology | Wireless Power vs. Busan Industrial Co |
| Showbox Corp vs. Wireless Power Amplifier | Showbox Corp vs. Organic Special Pet | Showbox Corp vs. Shinsegae Food | Showbox Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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