Correlation Between Pureun Mutual and DC Media
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and DC Media 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 DC Media 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 DC Media CoLtd, you can compare the effects of market volatilities on Pureun Mutual and DC Media 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 DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and DC Media.
Diversification Opportunities for Pureun Mutual and DC Media
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pureun and 263720 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and DC Media CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media CoLtd 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 DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media CoLtd has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and DC Media go up and down completely randomly.
Pair Corralation between Pureun Mutual and DC Media
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to under-perform the DC Media. But the stock apears to be less risky and, when comparing its historical volatility, Pureun Mutual Savings is 3.13 times less risky than DC Media. The stock trades about -0.03 of its potential returns per unit of risk. The DC Media CoLtd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,785,000 in DC Media CoLtd on September 12, 2024 and sell it today you would earn a total of 185,000 from holding DC Media CoLtd or generate 10.36% 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. DC Media CoLtd
Performance |
| Timeline |
| Pureun Mutual Savings |
| DC Media CoLtd |
Pureun Mutual and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and DC Media
The main advantage of trading using opposite Pureun Mutual and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media'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 |
| DC Media vs. Samsung Special Purpose | DC Media vs. Solution Advanced Technology | DC Media vs. Busan Industrial Co | DC Media vs. Busan Ind |
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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