Correlation Between ENERGYMACHINERY KOREA and MS Autotech
Can any of the company-specific risk be diversified away by investing in both ENERGYMACHINERY KOREA and MS Autotech 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 ENERGYMACHINERY KOREA and MS Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENERGYMACHINERY KOREA CoLtd and MS Autotech CoLtd, you can compare the effects of market volatilities on ENERGYMACHINERY KOREA and MS Autotech 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 ENERGYMACHINERY KOREA with a short position of MS Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGYMACHINERY KOREA and MS Autotech.
Diversification Opportunities for ENERGYMACHINERY KOREA and MS Autotech
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ENERGYMACHINERY and 123040 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ENERGYMACHINERY KOREA CoLtd and MS Autotech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MS Autotech CoLtd and ENERGYMACHINERY 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 ENERGYMACHINERY KOREA CoLtd are associated (or correlated) with MS Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MS Autotech CoLtd has no effect on the direction of ENERGYMACHINERY KOREA i.e., ENERGYMACHINERY KOREA and MS Autotech go up and down completely randomly.
Pair Corralation between ENERGYMACHINERY KOREA and MS Autotech
Assuming the 90 days trading horizon ENERGYMACHINERY KOREA CoLtd is expected to generate 1.2 times more return on investment than MS Autotech. However, ENERGYMACHINERY KOREA is 1.2 times more volatile than MS Autotech CoLtd. It trades about 0.21 of its potential returns per unit of risk. MS Autotech CoLtd is currently generating about -0.19 per unit of risk. If you would invest 263,000 in ENERGYMACHINERY KOREA CoLtd on February 2, 2024 and sell it today you would earn a total of 19,000 from holding ENERGYMACHINERY KOREA CoLtd or generate 7.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
ENERGYMACHINERY KOREA CoLtd vs. MS Autotech CoLtd
Performance |
Timeline |
ENERGYMACHINERY KOREA |
MS Autotech CoLtd |
ENERGYMACHINERY KOREA and MS Autotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENERGYMACHINERY KOREA and MS Autotech
The main advantage of trading using opposite ENERGYMACHINERY KOREA and MS Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGYMACHINERY KOREA position performs unexpectedly, MS Autotech 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 MS Autotech will offset losses from the drop in MS Autotech's long position.ENERGYMACHINERY KOREA vs. Jb Financial | ENERGYMACHINERY KOREA vs. Nh Investment And | ENERGYMACHINERY KOREA vs. SK Chemicals Co | ENERGYMACHINERY KOREA vs. DB Financial Investment |
MS Autotech vs. Humasis Co | MS Autotech vs. Access Bio | MS Autotech vs. Hana Financial 7 | MS Autotech vs. Atinum Investment 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |