Correlation Between Pureun Mutual and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Korea Shipbuilding 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 Korea Shipbuilding 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 Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Pureun Mutual and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Korea Shipbuilding.
Diversification Opportunities for Pureun Mutual and Korea Shipbuilding
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pureun and Korea is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Pureun Mutual and Korea Shipbuilding
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 9.04 times less return on investment than Korea Shipbuilding. In addition to that, Pureun Mutual is 1.0 times more volatile than Korea Shipbuilding Offshore. It trades about 0.01 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.11 per unit of volatility. If you would invest 20,450,000 in Korea Shipbuilding Offshore on October 30, 2024 and sell it today you would earn a total of 2,400,000 from holding Korea Shipbuilding Offshore or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Pureun Mutual Savings |
| Korea Shipbuilding |
Pureun Mutual and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Korea Shipbuilding
The main advantage of trading using opposite Pureun Mutual and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Pureun Mutual vs. Samji Electronics Co | Pureun Mutual vs. DAEDUCK ELECTRONICS CoLtd | Pureun Mutual vs. KyungIn Electronics Co | Pureun Mutual vs. PJ Electronics Co |
| Korea Shipbuilding vs. DB Financial Investment | Korea Shipbuilding vs. Daol Investment Securities | Korea Shipbuilding vs. ABOV Semiconductor Co | Korea Shipbuilding vs. Mgame Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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