Correlation Between Lotte Non and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Lotte Non and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Lotte Non and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Non and Grand Korea.
Diversification Opportunities for Lotte Non and Grand Korea
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotte and Grand is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Non Life Insurance and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Lotte Non i.e., Lotte Non and Grand Korea go up and down completely randomly.
Pair Corralation between Lotte Non and Grand Korea
Assuming the 90 days trading horizon Lotte Non Life Insurance is expected to under-perform the Grand Korea. In addition to that, Lotte Non is 1.35 times more volatile than Grand Korea Leisure. It trades about -0.18 of its total potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.06 per unit of volatility. If you would invest 1,146,000 in Grand Korea Leisure on September 1, 2024 and sell it today you would earn a total of 26,000 from holding Grand Korea Leisure or generate 2.27% 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. Grand Korea Leisure
Performance |
| Timeline |
| Lotte Non Life |
| Grand Korea Leisure |
Lotte Non and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Non and Grand Korea
The main advantage of trading using opposite Lotte Non and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Non position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Lotte Non vs. AptaBio Therapeutics | Lotte Non vs. Daewoo SBI SPAC | Lotte Non vs. Dream Security co | Lotte Non vs. Microfriend |
| Grand Korea vs. Cots Technology Co | Grand Korea vs. RFTech Co | Grand Korea vs. Shinhan Inverse Silver | Grand Korea vs. Vitzro 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |