Correlation Between Pureun Mutual and Sang A
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Sang A 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 Sang A 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 Sang A Frontec CoLtd, you can compare the effects of market volatilities on Pureun Mutual and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Sang A.
Diversification Opportunities for Pureun Mutual and Sang A
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pureun and Sang is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Sang A go up and down completely randomly.
Pair Corralation between Pureun Mutual and Sang A
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 1.15 times more return on investment than Sang A. However, Pureun Mutual is 1.15 times more volatile than Sang A Frontec CoLtd. It trades about 0.11 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about 0.09 per unit of risk. If you would invest 875,000 in Pureun Mutual Savings on September 21, 2024 and sell it today you would earn a total of 64,000 from holding Pureun Mutual Savings or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| Pureun Mutual Savings |
| Sang A Frontec |
Pureun Mutual and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Sang A
The main advantage of trading using opposite Pureun Mutual and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group | Pureun Mutual vs. Hana Financial | Pureun Mutual vs. Woori Financial Group |
| Sang A vs. Pureun Mutual Savings | Sang A vs. Dgb Financial | Sang A vs. Jeju Bank | Sang A vs. Daishin Information Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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