Correlation Between Pureun Mutual and KPX Green
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and KPX Green 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 KPX Green 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 KPX Green Chemical, you can compare the effects of market volatilities on Pureun Mutual and KPX Green 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 KPX Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and KPX Green.
Diversification Opportunities for Pureun Mutual and KPX Green
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pureun and KPX is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and KPX Green Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPX Green Chemical 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 KPX Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPX Green Chemical has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and KPX Green go up and down completely randomly.
Pair Corralation between Pureun Mutual and KPX Green
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 7.7 times less return on investment than KPX Green. But when comparing it to its historical volatility, Pureun Mutual Savings is 1.49 times less risky than KPX Green. It trades about 0.07 of its potential returns per unit of risk. KPX Green Chemical is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 463,292 in KPX Green Chemical on October 12, 2024 and sell it today you would earn a total of 219,708 from holding KPX Green Chemical or generate 47.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. KPX Green Chemical
Performance |
| Timeline |
| Pureun Mutual Savings |
| KPX Green Chemical |
Pureun Mutual and KPX Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and KPX Green
The main advantage of trading using opposite Pureun Mutual and KPX Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, KPX Green 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 KPX Green will offset losses from the drop in KPX Green's long position.| Pureun Mutual vs. Daewoo Electronic Components | Pureun Mutual vs. Samsung Life Insurance | Pureun Mutual vs. Sungmoon Electronics Co | Pureun Mutual vs. UJU Electronics Co |
| KPX Green vs. Pureun Mutual Savings | KPX Green vs. Golden Bridge Investment | KPX Green vs. KTB Investment Securities | KPX Green vs. Taegu Broadcasting |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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