Correlation Between An Shin and Concord Securities
Can any of the company-specific risk be diversified away by investing in both An Shin and Concord Securities 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 An Shin and Concord Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Shin Food Services and Concord Securities Co, you can compare the effects of market volatilities on An Shin and Concord Securities 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 An Shin with a short position of Concord Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Shin and Concord Securities.
Diversification Opportunities for An Shin and Concord Securities
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 1259 and Concord is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding An Shin Food Services and Concord Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Securities and An Shin 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 An Shin Food Services are associated (or correlated) with Concord Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Securities has no effect on the direction of An Shin i.e., An Shin and Concord Securities go up and down completely randomly.
Pair Corralation between An Shin and Concord Securities
Assuming the 90 days trading horizon An Shin Food Services is expected to generate 0.9 times more return on investment than Concord Securities. However, An Shin Food Services is 1.11 times less risky than Concord Securities. It trades about -0.06 of its potential returns per unit of risk. Concord Securities Co is currently generating about -0.26 per unit of risk. If you would invest 6,500 in An Shin Food Services on September 25, 2024 and sell it today you would lose (60.00) from holding An Shin Food Services or give up 0.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
An Shin Food Services vs. Concord Securities Co
Performance |
Timeline |
An Shin Food |
Concord Securities |
An Shin and Concord Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with An Shin and Concord Securities
The main advantage of trading using opposite An Shin and Concord Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Shin position performs unexpectedly, Concord Securities 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 Concord Securities will offset losses from the drop in Concord Securities' long position.An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. TTFB Co |
Concord Securities vs. Eastern Media International | Concord Securities vs. Lelon Electronics Corp | Concord Securities vs. An Shin Food Services | Concord Securities vs. C Media Electronics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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