Correlation Between Pureun Mutual and Sungdo Engineering
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Sungdo Engineering 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 Sungdo Engineering 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 Sungdo Engineering Construction, you can compare the effects of market volatilities on Pureun Mutual and Sungdo Engineering 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 Sungdo Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Sungdo Engineering.
Diversification Opportunities for Pureun Mutual and Sungdo Engineering
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pureun and Sungdo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Sungdo Engineering Constructio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungdo Engineering 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 Sungdo Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungdo Engineering has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Sungdo Engineering go up and down completely randomly.
Pair Corralation between Pureun Mutual and Sungdo Engineering
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to under-perform the Sungdo Engineering. In addition to that, Pureun Mutual is 1.1 times more volatile than Sungdo Engineering Construction. It trades about -0.35 of its total potential returns per unit of risk. Sungdo Engineering Construction is currently generating about -0.21 per unit of volatility. If you would invest 485,500 in Sungdo Engineering Construction on October 17, 2024 and sell it today you would lose (31,000) from holding Sungdo Engineering Construction or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Sungdo Engineering Constructio
Performance |
| Timeline |
| Pureun Mutual Savings |
| Sungdo Engineering |
Pureun Mutual and Sungdo Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Sungdo Engineering
The main advantage of trading using opposite Pureun Mutual and Sungdo Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Sungdo Engineering 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 Sungdo Engineering will offset losses from the drop in Sungdo Engineering's long position.| Pureun Mutual vs. Industrial Bank | Pureun Mutual vs. Dgb Financial | Pureun Mutual vs. Woori Financial Group | Pureun Mutual vs. Daechang Steel Co |
| Sungdo Engineering vs. Kbi Metal Co | Sungdo Engineering vs. Dongil Metal Co | Sungdo Engineering vs. SK Chemicals Co | Sungdo Engineering vs. Jeju Air 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |