Correlation Between Pureun Mutual and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on Pureun Mutual and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Shinsegae Information.
Diversification Opportunities for Pureun Mutual and Shinsegae Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pureun and Shinsegae is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Shinsegae Information go up and down completely randomly.
Pair Corralation between Pureun Mutual and Shinsegae Information
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 1.66 times more return on investment than Shinsegae Information. However, Pureun Mutual is 1.66 times more volatile than Shinsegae Information Communication. It trades about 0.0 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.04 per unit of risk. If you would invest 1,085,500 in Pureun Mutual Savings on August 25, 2024 and sell it today you would lose (214,500) from holding Pureun Mutual Savings or give up 19.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Shinsegae Information Communic
Performance |
| Timeline |
| Pureun Mutual Savings |
| Shinsegae Information |
Pureun Mutual and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Shinsegae Information
The main advantage of trading using opposite Pureun Mutual and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| Pureun Mutual vs. Korea New Network | Pureun Mutual vs. Dong A Eltek | Pureun Mutual vs. Dreamus Company | Pureun Mutual vs. SK Bioscience Co |
| Shinsegae Information vs. Hyosung Advanced Materials | Shinsegae Information vs. Iljin Materials Co | Shinsegae Information vs. Seoyon Topmetal Co | Shinsegae Information vs. Top Material 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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