Correlation Between Finebesteel and Fine Besteel
Can any of the company-specific risk be diversified away by investing in both Finebesteel and Fine Besteel 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 Finebesteel and Fine Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finebesteel and Fine Besteel Co, you can compare the effects of market volatilities on Finebesteel and Fine Besteel 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 Finebesteel with a short position of Fine Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finebesteel and Fine Besteel.
Diversification Opportunities for Finebesteel and Fine Besteel
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Finebesteel and Fine is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Finebesteel and Fine Besteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Besteel and Finebesteel 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 Finebesteel are associated (or correlated) with Fine Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Besteel has no effect on the direction of Finebesteel i.e., Finebesteel and Fine Besteel go up and down completely randomly.
Pair Corralation between Finebesteel and Fine Besteel
Assuming the 90 days trading horizon Finebesteel is expected to generate 1.0 times more return on investment than Fine Besteel. However, Finebesteel is 1.0 times more volatile than Fine Besteel Co. It trades about -0.11 of its potential returns per unit of risk. Fine Besteel Co is currently generating about -0.11 per unit of risk. If you would invest 234,500 in Finebesteel on September 12, 2025 and sell it today you would lose (55,500) from holding Finebesteel or give up 23.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finebesteel vs. Fine Besteel Co
Performance |
| Timeline |
| Finebesteel |
| Fine Besteel |
Finebesteel and Fine Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finebesteel and Fine Besteel
The main advantage of trading using opposite Finebesteel and Fine Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finebesteel position performs unexpectedly, Fine Besteel 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 Fine Besteel will offset losses from the drop in Fine Besteel's long position.| Finebesteel vs. Barunson Entertainment Arts | Finebesteel vs. ChipsMedia | Finebesteel vs. Dongwon Metal Co | Finebesteel vs. Duksan Hi Metal |
| Fine Besteel vs. Foodnamoo | Fine Besteel vs. QUALITAS SEMICONDUCTOR LTD | Fine Besteel vs. Shinsegae Food | Fine Besteel vs. CJ Seafood Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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