Correlation Between Pureun Mutual and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Pureun Mutual and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Iljin Display.
Diversification Opportunities for Pureun Mutual and Iljin Display
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pureun and Iljin is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Iljin Display go up and down completely randomly.
Pair Corralation between Pureun Mutual and Iljin Display
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.93 times more return on investment than Iljin Display. However, Pureun Mutual Savings is 1.08 times less risky than Iljin Display. It trades about 0.0 of its potential returns per unit of risk. Iljin Display is currently generating about -0.01 per unit of risk. If you would invest 1,103,150 in Pureun Mutual Savings on August 30, 2024 and sell it today you would lose (217,150) from holding Pureun Mutual Savings or give up 19.68% 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. Iljin Display
Performance |
| Timeline |
| Pureun Mutual Savings |
| Iljin Display |
Pureun Mutual and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Iljin Display
The main advantage of trading using opposite Pureun Mutual and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Pureun Mutual vs. Cube Entertainment | Pureun Mutual vs. Dreamus Company | Pureun Mutual vs. LG Energy Solution | Pureun Mutual vs. Dongwon System |
| Iljin Display vs. DAEDUCK ELECTRONICS CoLtd | Iljin Display vs. Busan Industrial Co | Iljin Display vs. Busan Ind | Iljin Display vs. Shinhan WTI Futures |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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