Correlation Between Korean Reinsurance and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Korean Reinsurance and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and Mobile Appliance.
Diversification Opportunities for Korean Reinsurance and Mobile Appliance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korean and Mobile is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance Co and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Korean Reinsurance i.e., Korean Reinsurance and Mobile Appliance go up and down completely randomly.
Pair Corralation between Korean Reinsurance and Mobile Appliance
Assuming the 90 days trading horizon Korean Reinsurance Co is expected to generate 0.44 times more return on investment than Mobile Appliance. However, Korean Reinsurance Co is 2.25 times less risky than Mobile Appliance. It trades about -0.01 of its potential returns per unit of risk. Mobile Appliance is currently generating about -0.17 per unit of risk. If you would invest 824,000 in Korean Reinsurance Co on November 27, 2024 and sell it today you would lose (2,000) from holding Korean Reinsurance Co or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korean Reinsurance Co vs. Mobile Appliance
Performance |
| Timeline |
| Korean Reinsurance |
| Mobile Appliance |
Korean Reinsurance and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and Mobile Appliance
The main advantage of trading using opposite Korean Reinsurance and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Korean Reinsurance vs. Worldex Industry Trading | Korean Reinsurance vs. E Investment Development | Korean Reinsurance vs. Nh Investment And | Korean Reinsurance vs. SBI Investment KOREA |
| Mobile Appliance vs. BGF Retail Co | Mobile Appliance vs. Jeju Air Co | Mobile Appliance vs. Samlip General Foods | Mobile Appliance vs. Organic Special Pet |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |