Correlation Between Pureun Mutual and ED Co
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and ED Co 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 ED Co 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 ED Co, you can compare the effects of market volatilities on Pureun Mutual and ED Co 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 ED Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and ED Co.
Diversification Opportunities for Pureun Mutual and ED Co
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pureun and 101360 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and ED Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Co 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 ED Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Co has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and ED Co go up and down completely randomly.
Pair Corralation between Pureun Mutual and ED Co
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.32 times more return on investment than ED Co. However, Pureun Mutual Savings is 3.15 times less risky than ED Co. It trades about 0.08 of its potential returns per unit of risk. ED Co is currently generating about -0.3 per unit of risk. If you would invest 844,000 in Pureun Mutual Savings on September 13, 2024 and sell it today you would earn a total of 19,000 from holding Pureun Mutual Savings or generate 2.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Pureun Mutual Savings vs. ED Co
Performance |
Timeline |
Pureun Mutual Savings |
ED Co |
Pureun Mutual and ED Co Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pureun Mutual and ED Co
The main advantage of trading using opposite Pureun Mutual and ED Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, ED Co 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 ED Co will offset losses from the drop in ED Co'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 |
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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.
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