Correlation Between Pureun Mutual and Korea Investment
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Korea Investment 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 Korea Investment 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 Korea Investment Holdings, you can compare the effects of market volatilities on Pureun Mutual and Korea Investment 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 Korea Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Korea Investment.
Diversification Opportunities for Pureun Mutual and Korea Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pureun and Korea is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Korea Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Investment Holdings 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 Korea Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Investment Holdings has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Korea Investment go up and down completely randomly.
Pair Corralation between Pureun Mutual and Korea Investment
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 11.47 times less return on investment than Korea Investment. In addition to that, Pureun Mutual is 1.48 times more volatile than Korea Investment Holdings. It trades about 0.01 of its total potential returns per unit of risk. Korea Investment Holdings is currently generating about 0.15 per unit of volatility. If you would invest 5,380,000 in Korea Investment Holdings on November 27, 2024 and sell it today you would earn a total of 740,000 from holding Korea Investment Holdings or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Korea Investment Holdings
Performance |
| Timeline |
| Pureun Mutual Savings |
| Korea Investment Holdings |
Pureun Mutual and Korea Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Korea Investment
The main advantage of trading using opposite Pureun Mutual and Korea Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Korea Investment 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 Korea Investment will offset losses from the drop in Korea Investment's long position.| Pureun Mutual vs. Alton Sports CoLtd | Pureun Mutual vs. Kyeryong Construction Industrial | Pureun Mutual vs. Choil Aluminum | Pureun Mutual vs. Nh Investment And |
| Korea Investment vs. Samyang Foods Co | Korea Investment vs. LB Investment | Korea Investment vs. Foodnamoo | Korea Investment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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