Correlation Between Wireless Power and Lotte Rental
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Lotte Rental 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 Lotte Rental 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 Lotte Rental Co, you can compare the effects of market volatilities on Wireless Power and Lotte Rental 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 Lotte Rental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Lotte Rental.
Diversification Opportunities for Wireless Power and Lotte Rental
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wireless and Lotte is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Lotte Rental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Rental 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 Lotte Rental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Rental has no effect on the direction of Wireless Power i.e., Wireless Power and Lotte Rental go up and down completely randomly.
Pair Corralation between Wireless Power and Lotte Rental
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 2.61 times more return on investment than Lotte Rental. However, Wireless Power is 2.61 times more volatile than Lotte Rental Co. It trades about 0.03 of its potential returns per unit of risk. Lotte Rental Co is currently generating about 0.03 per unit of risk. If you would invest 283,000 in Wireless Power Amplifier on December 27, 2024 and sell it today you would earn a total of 59,000 from holding Wireless Power Amplifier or generate 20.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Lotte Rental Co
Performance |
| Timeline |
| Wireless Power Amplifier |
| Lotte Rental |
Wireless Power and Lotte Rental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Lotte Rental
The main advantage of trading using opposite Wireless Power and Lotte Rental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Lotte Rental 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 Lotte Rental will offset losses from the drop in Lotte Rental's long position.| Wireless Power vs. Woori Technology Investment | Wireless Power vs. Golden Bridge Investment | Wireless Power vs. Stic Investments | Wireless Power vs. Sangsangin Investment Securities |
| Lotte Rental vs. DB Insurance Co | Lotte Rental vs. Samsung Life Insurance | Lotte Rental vs. SCI Information Service | Lotte Rental vs. BNK Financial Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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