Correlation Between Korean Reinsurance and PH Tech
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Korean Reinsurance and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and PH Tech.
Diversification Opportunities for Korean Reinsurance and PH Tech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korean and 239890 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Korean Reinsurance i.e., Korean Reinsurance and PH Tech go up and down completely randomly.
Pair Corralation between Korean Reinsurance and PH Tech
Assuming the 90 days trading horizon Korean Reinsurance Co is expected to generate 0.47 times more return on investment than PH Tech. However, Korean Reinsurance Co is 2.13 times less risky than PH Tech. It trades about 0.07 of its potential returns per unit of risk. PH Tech Co is currently generating about -0.01 per unit of risk. If you would invest 503,305 in Korean Reinsurance Co on October 11, 2024 and sell it today you would earn a total of 308,695 from holding Korean Reinsurance Co or generate 61.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korean Reinsurance Co vs. PH Tech Co
Performance |
| Timeline |
| Korean Reinsurance |
| PH Tech |
Korean Reinsurance and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and PH Tech
The main advantage of trading using opposite Korean Reinsurance and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Korean Reinsurance vs. Alton Sports CoLtd | Korean Reinsurance vs. TJ media Co | Korean Reinsurance vs. Digital Multimedia Technology | Korean Reinsurance vs. MEDIANA CoLtd |
| PH Tech vs. Incar Financial Service | PH Tech vs. Korean Reinsurance Co | PH Tech vs. Industrial Bank | PH Tech vs. Lotte Non Life Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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