Correlation Between Korean Reinsurance and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance and Incar Financial 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 Incar Financial 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 Incar Financial Service, you can compare the effects of market volatilities on Korean Reinsurance and Incar Financial 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and Incar Financial.
Diversification Opportunities for Korean Reinsurance and Incar Financial
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Korean and Incar is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance Co and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Korean Reinsurance i.e., Korean Reinsurance and Incar Financial go up and down completely randomly.
Pair Corralation between Korean Reinsurance and Incar Financial
Assuming the 90 days trading horizon Korean Reinsurance Co is expected to generate 0.3 times more return on investment than Incar Financial. However, Korean Reinsurance Co is 3.37 times less risky than Incar Financial. It trades about 0.09 of its potential returns per unit of risk. Incar Financial Service is currently generating about 0.02 per unit of risk. If you would invest 494,863 in Korean Reinsurance Co on August 29, 2024 and sell it today you would earn a total of 295,137 from holding Korean Reinsurance Co or generate 59.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.38% |
| Values | Daily Returns |
Korean Reinsurance Co vs. Incar Financial Service
Performance |
| Timeline |
| Korean Reinsurance |
| Incar Financial Service |
Korean Reinsurance and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and Incar Financial
The main advantage of trading using opposite Korean Reinsurance and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Korean Reinsurance vs. AptaBio Therapeutics | Korean Reinsurance vs. Daewoo SBI SPAC | Korean Reinsurance vs. Dream Security co | Korean Reinsurance vs. Microfriend |
| Incar Financial vs. Hanjinkal | Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. Mirae Asset Daewoo |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |