Correlation Between Pureun Mutual and Kyung-In Synthetic
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Kyung-In Synthetic 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 Kyung-In Synthetic 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Pureun Mutual and Kyung-In Synthetic 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 Kyung-In Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Kyung-In Synthetic.
Diversification Opportunities for Pureun Mutual and Kyung-In Synthetic
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pureun and Kyung-In is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung-In Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Kyung-In Synthetic go up and down completely randomly.
Pair Corralation between Pureun Mutual and Kyung-In Synthetic
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 5.13 times less return on investment than Kyung-In Synthetic. But when comparing it to its historical volatility, Pureun Mutual Savings is 4.08 times less risky than Kyung-In Synthetic. It trades about 0.1 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 282,000 in Kyung In Synthetic Corp on November 28, 2024 and sell it today you would earn a total of 12,000 from holding Kyung In Synthetic Corp or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Pureun Mutual Savings |
| Kyung In Synthetic |
Pureun Mutual and Kyung-In Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Kyung-In Synthetic
The main advantage of trading using opposite Pureun Mutual and Kyung-In Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Kyung-In Synthetic 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 Kyung-In Synthetic will offset losses from the drop in Kyung-In Synthetic's long position.| Pureun Mutual vs. Hanjoo Light Metal | Pureun Mutual vs. Korea Industrial Co | Pureun Mutual vs. Kbi Metal Co | Pureun Mutual vs. Formetal Co |
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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.
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