Correlation Between Weiss Korea and Argen X
Can any of the company-specific risk be diversified away by investing in both Weiss Korea and Argen X 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 Weiss Korea and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weiss Korea Opportunity and Argen X, you can compare the effects of market volatilities on Weiss Korea and Argen X 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 Weiss Korea with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiss Korea and Argen X.
Diversification Opportunities for Weiss Korea and Argen X
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weiss and Argen is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Weiss Korea Opportunity and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Weiss Korea 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 Weiss Korea Opportunity are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Weiss Korea i.e., Weiss Korea and Argen X go up and down completely randomly.
Pair Corralation between Weiss Korea and Argen X
Assuming the 90 days trading horizon Weiss Korea is expected to generate 1.8 times less return on investment than Argen X. In addition to that, Weiss Korea is 2.56 times more volatile than Argen X. It trades about 0.08 of its total potential returns per unit of risk. Argen X is currently generating about 0.36 per unit of volatility. If you would invest 53,718 in Argen X on September 19, 2024 and sell it today you would earn a total of 6,842 from holding Argen X or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Weiss Korea Opportunity vs. Argen X
Performance |
| Timeline |
| Weiss Korea Opportunity |
| Argen X |
Weiss Korea and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weiss Korea and Argen X
The main advantage of trading using opposite Weiss Korea and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weiss Korea position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X's long position.| Weiss Korea vs. Compagnie Plastic Omnium | Weiss Korea vs. Amedeo Air Four | Weiss Korea vs. CleanTech Lithium plc | Weiss Korea vs. Applied Materials |
| Argen X vs. Vitec Software Group | Argen X vs. European Metals Holdings | Argen X vs. URU Metals | Argen X vs. Silvercorp Metals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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