Correlation Between Eugene and Bokwang Industry
Can any of the company-specific risk be diversified away by investing in both Eugene and Bokwang Industry 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 Eugene and Bokwang Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene and Bokwang Industry Co, you can compare the effects of market volatilities on Eugene and Bokwang Industry 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 Eugene with a short position of Bokwang Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene and Bokwang Industry.
Diversification Opportunities for Eugene and Bokwang Industry
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eugene and Bokwang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eugene and Bokwang Industry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bokwang Industry and Eugene 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 Eugene are associated (or correlated) with Bokwang Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bokwang Industry has no effect on the direction of Eugene i.e., Eugene and Bokwang Industry go up and down completely randomly.
Pair Corralation between Eugene and Bokwang Industry
If you would invest (100.00) in Bokwang Industry Co on January 29, 2024 and sell it today you would earn a total of 100.00 from holding Bokwang Industry Co or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Eugene vs. Bokwang Industry Co
Performance |
Timeline |
Eugene |
Bokwang Industry |
Eugene and Bokwang Industry Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eugene and Bokwang Industry
The main advantage of trading using opposite Eugene and Bokwang Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene position performs unexpectedly, Bokwang Industry 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 Bokwang Industry will offset losses from the drop in Bokwang Industry's long position.The idea behind Eugene and Bokwang Industry Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Bokwang Industry vs. Hanjoo Light Metal | Bokwang Industry vs. Daedong Metals Co | Bokwang Industry vs. Korea Shipbuilding Offshore | Bokwang Industry vs. Kukil 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 Stocks Directory module to find actively traded stocks across global markets.
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