Correlation Between Cots Technology and PH Tech
Can any of the company-specific risk be diversified away by investing in both Cots Technology and PH Tech 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 Cots Technology and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cots Technology Co and PH Tech Co, you can compare the effects of market volatilities on Cots Technology and PH Tech 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 Cots Technology with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cots Technology and PH Tech.
Diversification Opportunities for Cots Technology and PH Tech
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cots and 239890 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cots Technology Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and Cots Technology 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 Cots Technology Co are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Cots Technology i.e., Cots Technology and PH Tech go up and down completely randomly.
Pair Corralation between Cots Technology and PH Tech
Assuming the 90 days trading horizon Cots Technology Co is expected to generate 1.08 times more return on investment than PH Tech. However, Cots Technology is 1.08 times more volatile than PH Tech Co. It trades about 0.46 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.01 per unit of risk. If you would invest 1,459,000 in Cots Technology Co on November 28, 2024 and sell it today you would earn a total of 407,000 from holding Cots Technology Co or generate 27.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cots Technology Co vs. PH Tech Co
Performance |
| Timeline |
| Cots Technology |
| PH Tech |
Cots Technology and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cots Technology and PH Tech
The main advantage of trading using opposite Cots Technology and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cots Technology position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Cots Technology vs. Hwangkum Steel Technology | Cots Technology vs. Mobileleader CoLtd | Cots Technology vs. iNtRON Biotechnology | Cots Technology vs. Daishin Information Communications |
| PH Tech vs. Korea Information Communications | PH Tech vs. Kyeryong Construction Industrial | PH Tech vs. Sempio Foods Co | PH Tech vs. PJ Metal 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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