Correlation Between Pureun Mutual and Naver
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Naver 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 Naver 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 Naver, you can compare the effects of market volatilities on Pureun Mutual and Naver 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 Naver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Naver.
Diversification Opportunities for Pureun Mutual and Naver
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pureun and Naver is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Naver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naver 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 Naver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naver has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Naver go up and down completely randomly.
Pair Corralation between Pureun Mutual and Naver
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 1.6 times more return on investment than Naver. However, Pureun Mutual is 1.6 times more volatile than Naver. It trades about 0.15 of its potential returns per unit of risk. Naver is currently generating about 0.2 per unit of risk. If you would invest 861,000 in Pureun Mutual Savings on September 19, 2024 and sell it today you would earn a total of 94,000 from holding Pureun Mutual Savings or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Naver
Performance |
| Timeline |
| Pureun Mutual Savings |
| Naver |
Pureun Mutual and Naver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Naver
The main advantage of trading using opposite Pureun Mutual and Naver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Naver 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 Naver will offset losses from the drop in Naver's long position.| Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group | Pureun Mutual vs. Hana Financial | Pureun Mutual vs. Woori Financial Group |
| Naver vs. Foodnamoo | Naver vs. Hyundai Green Food | Naver vs. Pureun Mutual Savings | Naver vs. CKH Food Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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