Correlation Between Eugene Investment and Korea Investment
Can any of the company-specific risk be diversified away by investing in both Eugene Investment and Korea Investment 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 Eugene Investment and Korea Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Investment Securities and Korea Investment Holdings, you can compare the effects of market volatilities on Eugene Investment and Korea Investment 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 Eugene Investment with a short position of Korea Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Investment and Korea Investment.
Diversification Opportunities for Eugene Investment and Korea Investment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eugene and Korea is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Investment Securities and Korea Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Investment Holdings and Eugene Investment 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 Eugene Investment Securities are associated (or correlated) with Korea Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Investment Holdings has no effect on the direction of Eugene Investment i.e., Eugene Investment and Korea Investment go up and down completely randomly.
Pair Corralation between Eugene Investment and Korea Investment
Assuming the 90 days trading horizon Eugene Investment Securities is expected to under-perform the Korea Investment. In addition to that, Eugene Investment is 2.5 times more volatile than Korea Investment Holdings. It trades about 0.0 of its total potential returns per unit of risk. Korea Investment Holdings is currently generating about 0.06 per unit of volatility. If you would invest 4,021,237 in Korea Investment Holdings on September 2, 2024 and sell it today you would earn a total of 1,388,763 from holding Korea Investment Holdings or generate 34.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Investment Securities vs. Korea Investment Holdings
Performance |
| Timeline |
| Eugene Investment |
| Korea Investment Holdings |
Eugene Investment and Korea Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Investment and Korea Investment
The main advantage of trading using opposite Eugene Investment and Korea Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Investment position performs unexpectedly, Korea Investment 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 Investment will offset losses from the drop in Korea Investment's long position.| Eugene Investment vs. AptaBio Therapeutics | Eugene Investment vs. Daewoo SBI SPAC | Eugene Investment vs. Dream Security co | Eugene Investment vs. Microfriend |
| Korea Investment vs. Shinsegae Engineering Construction | Korea Investment vs. Jinro Distillers Co | Korea Investment vs. KEPCO Engineering Construction | Korea Investment vs. Hanshin Construction 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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