Correlation Between Wireless Power and Poongsan
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Poongsan 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 Poongsan 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 Poongsan, you can compare the effects of market volatilities on Wireless Power and Poongsan 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 Poongsan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Poongsan.
Diversification Opportunities for Wireless Power and Poongsan
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wireless and Poongsan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Poongsan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poongsan 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 Poongsan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poongsan has no effect on the direction of Wireless Power i.e., Wireless Power and Poongsan go up and down completely randomly.
Pair Corralation between Wireless Power and Poongsan
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 1.84 times more return on investment than Poongsan. However, Wireless Power is 1.84 times more volatile than Poongsan. It trades about 0.23 of its potential returns per unit of risk. Poongsan is currently generating about -0.13 per unit of risk. If you would invest 253,000 in Wireless Power Amplifier on November 6, 2024 and sell it today you would earn a total of 226,500 from holding Wireless Power Amplifier or generate 89.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Poongsan
Performance |
| Timeline |
| Wireless Power Amplifier |
| Poongsan |
Wireless Power and Poongsan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Poongsan
The main advantage of trading using opposite Wireless Power and Poongsan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Poongsan 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 Poongsan will offset losses from the drop in Poongsan's long position.| Wireless Power vs. Dongwoon Anatech Co | Wireless Power vs. Narae Nanotech Corp | Wireless Power vs. CG Hi Tech | Wireless Power vs. ITM Semiconductor Co |
| Poongsan vs. LG Chemicals | Poongsan vs. POSCO Holdings | Poongsan vs. Hanwha Solutions | Poongsan vs. Lotte Chemical Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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