Correlation Between Pureun Mutual and Kbi Metal
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Kbi Metal 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 Kbi Metal 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 Kbi Metal Co, you can compare the effects of market volatilities on Pureun Mutual and Kbi Metal 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 Kbi Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Kbi Metal.
Diversification Opportunities for Pureun Mutual and Kbi Metal
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pureun and Kbi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Kbi Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kbi Metal 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 Kbi Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kbi Metal has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Kbi Metal go up and down completely randomly.
Pair Corralation between Pureun Mutual and Kbi Metal
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.24 times more return on investment than Kbi Metal. However, Pureun Mutual Savings is 4.19 times less risky than Kbi Metal. It trades about 0.02 of its potential returns per unit of risk. Kbi Metal Co is currently generating about -0.02 per unit of risk. If you would invest 827,000 in Pureun Mutual Savings on January 23, 2025 and sell it today you would earn a total of 4,000 from holding Pureun Mutual Savings or generate 0.48% 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. Kbi Metal Co
Performance |
| Timeline |
| Pureun Mutual Savings |
| Kbi Metal |
Pureun Mutual and Kbi Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Kbi Metal
The main advantage of trading using opposite Pureun Mutual and Kbi Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Kbi Metal 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 Kbi Metal will offset losses from the drop in Kbi Metal's long position.| Pureun Mutual vs. Samsung Electronics Co | Pureun Mutual vs. Samsung Electronics Co | Pureun Mutual vs. Hyundai Motor Co | Pureun Mutual vs. Hyundai Motor Co |
| Kbi Metal vs. Jin Air Co | Kbi Metal vs. Seoul Food Industrial | Kbi Metal vs. MetaLabs Co | Kbi Metal vs. Kumho Industrial 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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