Correlation Between Pureun Mutual and POSCO Holdings
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and POSCO Holdings 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 Pureun Mutual and POSCO Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and POSCO Holdings, you can compare the effects of market volatilities on Pureun Mutual and POSCO Holdings 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 Pureun Mutual with a short position of POSCO Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and POSCO Holdings.
Diversification Opportunities for Pureun Mutual and POSCO Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pureun and POSCO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and POSCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO Holdings and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with POSCO Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO Holdings has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and POSCO Holdings go up and down completely randomly.
Pair Corralation between Pureun Mutual and POSCO Holdings
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.26 times more return on investment than POSCO Holdings. However, Pureun Mutual Savings is 3.81 times less risky than POSCO Holdings. It trades about -0.08 of its potential returns per unit of risk. POSCO Holdings is currently generating about -0.03 per unit of risk. If you would invest 835,206 in Pureun Mutual Savings on October 24, 2024 and sell it today you would lose (7,206) from holding Pureun Mutual Savings or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. POSCO Holdings
Performance |
| Timeline |
| Pureun Mutual Savings |
| POSCO Holdings |
Pureun Mutual and POSCO Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and POSCO Holdings
The main advantage of trading using opposite Pureun Mutual and POSCO Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, POSCO Holdings 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 POSCO Holdings will offset losses from the drop in POSCO Holdings' long position.| Pureun Mutual vs. CU Tech Corp | Pureun Mutual vs. Orbitech Co | Pureun Mutual vs. Moadata Co | Pureun Mutual vs. NICE Information Service |
| POSCO Holdings vs. Daejung Chemicals Metals | POSCO Holdings vs. Hanjoo Light Metal | POSCO Holdings vs. Kbi Metal Co | POSCO Holdings vs. Kukil Metal 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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