Correlation Between Korean Reinsurance and Korea Refract
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance and Korea Refract 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 Korean Reinsurance and Korea Refract into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korean Reinsurance Co and Korea Refract, you can compare the effects of market volatilities on Korean Reinsurance and Korea Refract 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 Korean Reinsurance with a short position of Korea Refract. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and Korea Refract.
Diversification Opportunities for Korean Reinsurance and Korea Refract
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korean and Korea is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance Co and Korea Refract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Refract and Korean Reinsurance 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 Korean Reinsurance Co are associated (or correlated) with Korea Refract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Refract has no effect on the direction of Korean Reinsurance i.e., Korean Reinsurance and Korea Refract go up and down completely randomly.
Pair Corralation between Korean Reinsurance and Korea Refract
Assuming the 90 days trading horizon Korean Reinsurance Co is expected to generate 0.57 times more return on investment than Korea Refract. However, Korean Reinsurance Co is 1.75 times less risky than Korea Refract. It trades about 0.08 of its potential returns per unit of risk. Korea Refract is currently generating about -0.01 per unit of risk. If you would invest 452,837 in Korean Reinsurance Co on September 14, 2024 and sell it today you would earn a total of 364,163 from holding Korean Reinsurance Co or generate 80.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korean Reinsurance Co vs. Korea Refract
Performance |
| Timeline |
| Korean Reinsurance |
| Korea Refract |
Korean Reinsurance and Korea Refract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and Korea Refract
The main advantage of trading using opposite Korean Reinsurance and Korea Refract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance position performs unexpectedly, Korea Refract 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 Refract will offset losses from the drop in Korea Refract's long position.| Korean Reinsurance vs. Samsung Electronics Co | Korean Reinsurance vs. Samsung Electronics Co | Korean Reinsurance vs. SK Hynix | Korean Reinsurance vs. POSCO Holdings |
| Korea Refract vs. Dongbu Insurance Co | Korea Refract vs. Korea Information Engineering | Korea Refract vs. Korean Reinsurance Co | Korea Refract vs. NICE Information Service |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |