Correlation Between BIT Computer and Seoul Semiconductor
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Seoul Semiconductor 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 BIT Computer and Seoul Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Seoul Semiconductor Co, you can compare the effects of market volatilities on BIT Computer and Seoul Semiconductor 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 BIT Computer with a short position of Seoul Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Seoul Semiconductor.
Diversification Opportunities for BIT Computer and Seoul Semiconductor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIT and Seoul is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Seoul Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Semiconductor and BIT Computer 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 BIT Computer Co are associated (or correlated) with Seoul Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Semiconductor has no effect on the direction of BIT Computer i.e., BIT Computer and Seoul Semiconductor go up and down completely randomly.
Pair Corralation between BIT Computer and Seoul Semiconductor
Assuming the 90 days trading horizon BIT Computer is expected to generate 1.83 times less return on investment than Seoul Semiconductor. But when comparing it to its historical volatility, BIT Computer Co is 1.14 times less risky than Seoul Semiconductor. It trades about 0.14 of its potential returns per unit of risk. Seoul Semiconductor Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 707,856 in Seoul Semiconductor Co on October 12, 2024 and sell it today you would earn a total of 58,144 from holding Seoul Semiconductor Co or generate 8.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BIT Computer Co vs. Seoul Semiconductor Co
Performance |
Timeline |
BIT Computer |
Seoul Semiconductor |
BIT Computer and Seoul Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIT Computer and Seoul Semiconductor
The main advantage of trading using opposite BIT Computer and Seoul Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Seoul Semiconductor 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 Seoul Semiconductor will offset losses from the drop in Seoul Semiconductor's long position.BIT Computer vs. Oscotec | ||
BIT Computer vs. Genexine | ||
BIT Computer vs. Busan Industrial Co | ||
BIT Computer vs. UNISEM 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |