Correlation Between Pantech Group and Coraza Integrated
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Coraza Integrated 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 Pantech Group and Coraza Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantech Group Holdings and Coraza Integrated Technology, you can compare the effects of market volatilities on Pantech Group and Coraza Integrated 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 Pantech Group with a short position of Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Coraza Integrated.
Diversification Opportunities for Pantech Group and Coraza Integrated
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pantech and Coraza is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of Pantech Group i.e., Pantech Group and Coraza Integrated go up and down completely randomly.
Pair Corralation between Pantech Group and Coraza Integrated
Assuming the 90 days trading horizon Pantech Group Holdings is expected to generate 0.5 times more return on investment than Coraza Integrated. However, Pantech Group Holdings is 1.98 times less risky than Coraza Integrated. It trades about 0.05 of its potential returns per unit of risk. Coraza Integrated Technology is currently generating about -0.04 per unit of risk. If you would invest 68.00 in Pantech Group Holdings on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Pantech Group Holdings or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pantech Group Holdings vs. Coraza Integrated Technology
Performance |
| Timeline |
| Pantech Group Holdings |
| Coraza Integrated |
Pantech Group and Coraza Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Coraza Integrated
The main advantage of trading using opposite Pantech Group and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.| Pantech Group vs. Apollo Food Holdings | Pantech Group vs. Oriental Food Industries | Pantech Group vs. Dataprep Holdings Bhd | Pantech Group vs. Shangri La Hotels |
| Coraza Integrated vs. Press Metal Bhd | Coraza Integrated vs. PMB Technology Bhd | Coraza Integrated vs. Pantech Group Holdings | Coraza Integrated vs. CSC Steel Holdings |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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