Correlation Between Pureun Mutual and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Pureun Mutual and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and BNK Financial.
Diversification Opportunities for Pureun Mutual and BNK Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pureun and BNK is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and BNK Financial go up and down completely randomly.
Pair Corralation between Pureun Mutual and BNK Financial
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 3.36 times less return on investment than BNK Financial. In addition to that, Pureun Mutual is 1.89 times more volatile than BNK Financial Group. It trades about 0.01 of its total potential returns per unit of risk. BNK Financial Group is currently generating about 0.09 per unit of volatility. If you would invest 614,089 in BNK Financial Group on August 27, 2024 and sell it today you would earn a total of 381,911 from holding BNK Financial Group or generate 62.19% 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. BNK Financial Group
Performance |
| Timeline |
| Pureun Mutual Savings |
| BNK Financial Group |
Pureun Mutual and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and BNK Financial
The main advantage of trading using opposite Pureun Mutual and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial'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 |
| BNK Financial vs. Samyoung Electronics Co | BNK Financial vs. Derkwoo Electronics Co | BNK Financial vs. Orbitech Co | BNK Financial vs. Daeduck Electronics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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