Correlation Between Ewon Comfortech and Silla Sg
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and Silla Sg 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 Ewon Comfortech and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ewon Comfortech Co and Silla Sg Co, you can compare the effects of market volatilities on Ewon Comfortech and Silla Sg 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 Ewon Comfortech with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and Silla Sg.
Diversification Opportunities for Ewon Comfortech and Silla Sg
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ewon and Silla is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and Ewon Comfortech 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 Ewon Comfortech Co are associated (or correlated) with Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and Silla Sg go up and down completely randomly.
Pair Corralation between Ewon Comfortech and Silla Sg
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to generate 0.61 times more return on investment than Silla Sg. However, Ewon Comfortech Co is 1.63 times less risky than Silla Sg. It trades about 0.05 of its potential returns per unit of risk. Silla Sg Co is currently generating about -0.03 per unit of risk. If you would invest 95,000 in Ewon Comfortech Co on December 4, 2024 and sell it today you would earn a total of 6,000 from holding Ewon Comfortech Co or generate 6.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ewon Comfortech Co vs. Silla Sg Co
Performance |
Timeline |
Ewon Comfortech |
Silla Sg |
Ewon Comfortech and Silla Sg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ewon Comfortech and Silla Sg
The main advantage of trading using opposite Ewon Comfortech and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.Ewon Comfortech vs. Daejung Chemicals Metals | Ewon Comfortech vs. Daedong Metals Co | Ewon Comfortech vs. Duksan Hi Metal | Ewon Comfortech vs. Display Tech Co |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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