Correlation Between Pureun Mutual and InfoBank
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and InfoBank 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 InfoBank 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 InfoBank, you can compare the effects of market volatilities on Pureun Mutual and InfoBank 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 InfoBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and InfoBank.
Diversification Opportunities for Pureun Mutual and InfoBank
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pureun and InfoBank is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and InfoBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfoBank 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 InfoBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfoBank has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and InfoBank go up and down completely randomly.
Pair Corralation between Pureun Mutual and InfoBank
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.85 times more return on investment than InfoBank. However, Pureun Mutual Savings is 1.17 times less risky than InfoBank. It trades about 0.0 of its potential returns per unit of risk. InfoBank is currently generating about -0.02 per unit of risk. If you would invest 1,046,446 in Pureun Mutual Savings on August 27, 2024 and sell it today you would lose (175,446) from holding Pureun Mutual Savings or give up 16.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. InfoBank
Performance |
| Timeline |
| Pureun Mutual Savings |
| InfoBank |
Pureun Mutual and InfoBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and InfoBank
The main advantage of trading using opposite Pureun Mutual and InfoBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, InfoBank 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 InfoBank will offset losses from the drop in InfoBank'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 |
| InfoBank vs. Korea Real Estate | InfoBank vs. Korea Ratings Co | InfoBank vs. IQuest Co | InfoBank vs. Wonbang Tech 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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