Correlation Between CC International and Bohae Brewery
Can any of the company-specific risk be diversified away by investing in both CC International and Bohae Brewery 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 CC International and Bohae Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CC International Corp and Bohae Brewery, you can compare the effects of market volatilities on CC International and Bohae Brewery 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 CC International with a short position of Bohae Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of CC International and Bohae Brewery.
Diversification Opportunities for CC International and Bohae Brewery
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 352480 and Bohae is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CC International Corp and Bohae Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohae Brewery and CC International 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 CC International Corp are associated (or correlated) with Bohae Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohae Brewery has no effect on the direction of CC International i.e., CC International and Bohae Brewery go up and down completely randomly.
Pair Corralation between CC International and Bohae Brewery
Assuming the 90 days trading horizon CC International Corp is expected to generate 1.86 times more return on investment than Bohae Brewery. However, CC International is 1.86 times more volatile than Bohae Brewery. It trades about 0.04 of its potential returns per unit of risk. Bohae Brewery is currently generating about -0.02 per unit of risk. If you would invest 2,850,000 in CC International Corp on September 1, 2024 and sell it today you would earn a total of 1,140,000 from holding CC International Corp or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
CC International Corp vs. Bohae Brewery
Performance |
| Timeline |
| CC International Corp |
| Bohae Brewery |
CC International and Bohae Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CC International and Bohae Brewery
The main advantage of trading using opposite CC International and Bohae Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CC International position performs unexpectedly, Bohae Brewery 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 Bohae Brewery will offset losses from the drop in Bohae Brewery's long position.| CC International vs. Bohae Brewery | CC International vs. Daejoo Electronic Materials | CC International vs. Daiyang Metal Co | CC International vs. Cuckoo Electronics Co |
| Bohae Brewery vs. Korea Real Estate | Bohae Brewery vs. Korea Ratings Co | Bohae Brewery vs. IQuest Co | Bohae Brewery vs. Wonbang Tech Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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