Correlation Between Korea Petro and LockLock
Can any of the company-specific risk be diversified away by investing in both Korea Petro and LockLock 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 Korea Petro and LockLock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Petro Chemical and LockLock Co, you can compare the effects of market volatilities on Korea Petro and LockLock 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 Korea Petro with a short position of LockLock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Petro and LockLock.
Diversification Opportunities for Korea Petro and LockLock
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and LockLock is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Korea Petro Chemical and LockLock Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LockLock and Korea Petro 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 Korea Petro Chemical are associated (or correlated) with LockLock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LockLock has no effect on the direction of Korea Petro i.e., Korea Petro and LockLock go up and down completely randomly.
Pair Corralation between Korea Petro and LockLock
Assuming the 90 days trading horizon Korea Petro Chemical is expected to under-perform the LockLock. In addition to that, Korea Petro is 54.25 times more volatile than LockLock Co. It trades about -0.11 of its total potential returns per unit of risk. LockLock Co is currently generating about -0.07 per unit of volatility. If you would invest 867,000 in LockLock Co on September 13, 2024 and sell it today you would lose (1,000.00) from holding LockLock Co or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Korea Petro Chemical vs. LockLock Co
Performance |
| Timeline |
| Korea Petro Chemical |
| LockLock |
Korea Petro and LockLock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Petro and LockLock
The main advantage of trading using opposite Korea Petro and LockLock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Petro position performs unexpectedly, LockLock 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 LockLock will offset losses from the drop in LockLock's long position.| Korea Petro vs. Pungguk Ethanol Industrial | Korea Petro vs. EBEST Investment Securities | Korea Petro vs. Daejung Chemicals Metals | Korea Petro vs. DSC Investment |
| LockLock vs. Dongbu Steel Co | LockLock vs. LG Display Co | LockLock vs. Moonbae Steel | LockLock vs. Wonil Special Steel |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |