Correlation Between Lotte Non and Korea Information
Can any of the company-specific risk be diversified away by investing in both Lotte Non and Korea Information 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 Lotte Non and Korea Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Non Life Insurance and Korea Information Communications, you can compare the effects of market volatilities on Lotte Non and Korea Information 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 Lotte Non with a short position of Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Non and Korea Information.
Diversification Opportunities for Lotte Non and Korea Information
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotte and Korea is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Non Life Insurance and Korea Information Communicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information and Lotte Non 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 Lotte Non Life Insurance are associated (or correlated) with Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Lotte Non i.e., Lotte Non and Korea Information go up and down completely randomly.
Pair Corralation between Lotte Non and Korea Information
Assuming the 90 days trading horizon Lotte Non Life Insurance is expected to under-perform the Korea Information. In addition to that, Lotte Non is 2.89 times more volatile than Korea Information Communications. It trades about -0.15 of its total potential returns per unit of risk. Korea Information Communications is currently generating about 0.06 per unit of volatility. If you would invest 811,000 in Korea Information Communications on August 28, 2024 and sell it today you would earn a total of 9,000 from holding Korea Information Communications or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Non Life Insurance vs. Korea Information Communicatio
Performance |
| Timeline |
| Lotte Non Life |
| Korea Information |
Lotte Non and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Non and Korea Information
The main advantage of trading using opposite Lotte Non and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Non position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Lotte Non vs. AptaBio Therapeutics | Lotte Non vs. Daewoo SBI SPAC | Lotte Non vs. Dream Security co | Lotte Non vs. Microfriend |
| Korea Information vs. Korea Real Estate | Korea Information vs. Korea Ratings Co | Korea Information vs. IQuest Co | Korea Information vs. Wonbang Tech 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |