Correlation Between Pureun Mutual and Bookook Steel
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Bookook Steel 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 Bookook Steel 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 Bookook Steel, you can compare the effects of market volatilities on Pureun Mutual and Bookook Steel 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 Bookook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Bookook Steel.
Diversification Opportunities for Pureun Mutual and Bookook Steel
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pureun and Bookook is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Bookook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bookook Steel 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 Bookook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bookook Steel has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Bookook Steel go up and down completely randomly.
Pair Corralation between Pureun Mutual and Bookook Steel
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 2.36 times more return on investment than Bookook Steel. However, Pureun Mutual is 2.36 times more volatile than Bookook Steel. It trades about 0.08 of its potential returns per unit of risk. Bookook Steel is currently generating about 0.06 per unit of risk. If you would invest 801,761 in Pureun Mutual Savings on October 12, 2024 and sell it today you would earn a total of 37,239 from holding Pureun Mutual Savings or generate 4.64% 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. Bookook Steel
Performance |
| Timeline |
| Pureun Mutual Savings |
| Bookook Steel |
Pureun Mutual and Bookook Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Bookook Steel
The main advantage of trading using opposite Pureun Mutual and Bookook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Bookook Steel 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 Bookook Steel will offset losses from the drop in Bookook Steel's long position.| Pureun Mutual vs. Samick Musical Instruments | Pureun Mutual vs. Aprogen Healthcare Games | Pureun Mutual vs. Mgame Corp | Pureun Mutual vs. Nice Information Telecommunication |
| Bookook Steel vs. Ajusteel Co | Bookook Steel vs. Ni Steel | Bookook Steel vs. Korea Steel Co | Bookook Steel vs. Samwon Steel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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