Correlation Between Access Bio and Taewoong Logistics
Can any of the company-specific risk be diversified away by investing in both Access Bio and Taewoong Logistics 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 Access Bio and Taewoong Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and Taewoong Logistics CoLtd, you can compare the effects of market volatilities on Access Bio and Taewoong Logistics 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 Access Bio with a short position of Taewoong Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and Taewoong Logistics.
Diversification Opportunities for Access Bio and Taewoong Logistics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Access and Taewoong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and Taewoong Logistics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taewoong Logistics CoLtd and Access Bio 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 Access Bio are associated (or correlated) with Taewoong Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taewoong Logistics CoLtd has no effect on the direction of Access Bio i.e., Access Bio and Taewoong Logistics go up and down completely randomly.
Pair Corralation between Access Bio and Taewoong Logistics
Assuming the 90 days trading horizon Access Bio is expected to under-perform the Taewoong Logistics. In addition to that, Access Bio is 1.45 times more volatile than Taewoong Logistics CoLtd. It trades about -0.02 of its total potential returns per unit of risk. Taewoong Logistics CoLtd is currently generating about -0.02 per unit of volatility. If you would invest 360,672 in Taewoong Logistics CoLtd on November 3, 2024 and sell it today you would lose (72,672) from holding Taewoong Logistics CoLtd or give up 20.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. Taewoong Logistics CoLtd
Performance |
| Timeline |
| Access Bio |
| Taewoong Logistics CoLtd |
Access Bio and Taewoong Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and Taewoong Logistics
The main advantage of trading using opposite Access Bio and Taewoong Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, Taewoong Logistics 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 Taewoong Logistics will offset losses from the drop in Taewoong Logistics' long position.| Access Bio vs. Korea Petro Chemical | Access Bio vs. Cuckoo Electronics Co | Access Bio vs. Kyung In Synthetic Corp | Access Bio vs. ABCO Electronics Co |
| Taewoong Logistics vs. Lotte Rental Co | Taewoong Logistics vs. Solution Advanced Technology | Taewoong Logistics vs. Vitzro Tech Co | Taewoong Logistics vs. YeaRimDang Publishing 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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