Correlation Between Ok Biotech and Easywell Biomedicals
Can any of the company-specific risk be diversified away by investing in both Ok Biotech and Easywell Biomedicals 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 Ok Biotech and Easywell Biomedicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ok Biotech Co and Easywell Biomedicals, you can compare the effects of market volatilities on Ok Biotech and Easywell Biomedicals 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 Ok Biotech with a short position of Easywell Biomedicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ok Biotech and Easywell Biomedicals.
Diversification Opportunities for Ok Biotech and Easywell Biomedicals
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 4155 and Easywell is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ok Biotech Co and Easywell Biomedicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easywell Biomedicals and Ok Biotech 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 Ok Biotech Co are associated (or correlated) with Easywell Biomedicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easywell Biomedicals has no effect on the direction of Ok Biotech i.e., Ok Biotech and Easywell Biomedicals go up and down completely randomly.
Pair Corralation between Ok Biotech and Easywell Biomedicals
Assuming the 90 days trading horizon Ok Biotech is expected to generate 137.56 times less return on investment than Easywell Biomedicals. But when comparing it to its historical volatility, Ok Biotech Co is 1.99 times less risky than Easywell Biomedicals. It trades about 0.0 of its potential returns per unit of risk. Easywell Biomedicals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,592 in Easywell Biomedicals on September 3, 2024 and sell it today you would earn a total of 5,198 from holding Easywell Biomedicals or generate 326.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ok Biotech Co vs. Easywell Biomedicals
Performance |
| Timeline |
| Ok Biotech |
| Easywell Biomedicals |
Ok Biotech and Easywell Biomedicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ok Biotech and Easywell Biomedicals
The main advantage of trading using opposite Ok Biotech and Easywell Biomedicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ok Biotech position performs unexpectedly, Easywell Biomedicals 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 Easywell Biomedicals will offset losses from the drop in Easywell Biomedicals' long position.| Ok Biotech vs. AVerMedia Technologies | Ok Biotech vs. Holiday Entertainment Co | Ok Biotech vs. Chia Yi Steel | Ok Biotech vs. Gamania Digital Entertainment |
| Easywell Biomedicals vs. StShine Optical Co | Easywell Biomedicals vs. Bioteque | Easywell Biomedicals vs. TTY Biopharm Co | Easywell Biomedicals vs. Apex Biotechnology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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