Correlation Between POSCO Holdings and SundayToz Corp
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and SundayToz Corp 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 POSCO Holdings and SundayToz Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and SundayToz Corp, you can compare the effects of market volatilities on POSCO Holdings and SundayToz Corp 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 POSCO Holdings with a short position of SundayToz Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and SundayToz Corp.
Diversification Opportunities for POSCO Holdings and SundayToz Corp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between POSCO and SundayToz is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and SundayToz Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SundayToz Corp and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with SundayToz Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SundayToz Corp has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and SundayToz Corp go up and down completely randomly.
Pair Corralation between POSCO Holdings and SundayToz Corp
Assuming the 90 days trading horizon POSCO Holdings is expected to generate 1.42 times more return on investment than SundayToz Corp. However, POSCO Holdings is 1.42 times more volatile than SundayToz Corp. It trades about 0.17 of its potential returns per unit of risk. SundayToz Corp is currently generating about -0.15 per unit of risk. If you would invest 25,967,700 in POSCO Holdings on December 11, 2024 and sell it today you would earn a total of 5,082,300 from holding POSCO Holdings or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. SundayToz Corp
Performance |
| Timeline |
| POSCO Holdings |
| SundayToz Corp |
POSCO Holdings and SundayToz Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and SundayToz Corp
The main advantage of trading using opposite POSCO Holdings and SundayToz Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, SundayToz Corp 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 SundayToz Corp will offset losses from the drop in SundayToz Corp's long position.| POSCO Holdings vs. Clean Science co | POSCO Holdings vs. Daewoo Engineering Construction | POSCO Holdings vs. Sung Bo Chemicals | POSCO Holdings vs. Namkwang Engineering Construction |
| SundayToz Corp vs. Ewon Comfortech Co | SundayToz Corp vs. Bohae Brewery | SundayToz Corp vs. AurosTechnology | SundayToz Corp vs. Jeju Beer 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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