Correlation Between Pureun Mutual and Iljin HySolus
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Iljin HySolus 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 Iljin HySolus 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 Iljin HySolus Co, you can compare the effects of market volatilities on Pureun Mutual and Iljin HySolus 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 Iljin HySolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Iljin HySolus.
Diversification Opportunities for Pureun Mutual and Iljin HySolus
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pureun and Iljin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Iljin HySolus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin HySolus 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 Iljin HySolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin HySolus has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Iljin HySolus go up and down completely randomly.
Pair Corralation between Pureun Mutual and Iljin HySolus
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.88 times more return on investment than Iljin HySolus. However, Pureun Mutual Savings is 1.14 times less risky than Iljin HySolus. It trades about 0.02 of its potential returns per unit of risk. Iljin HySolus Co is currently generating about -0.11 per unit of risk. If you would invest 811,980 in Pureun Mutual Savings on October 24, 2024 and sell it today you would earn a total of 16,020 from holding Pureun Mutual Savings or generate 1.97% 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. Iljin HySolus Co
Performance |
| Timeline |
| Pureun Mutual Savings |
| Iljin HySolus |
Pureun Mutual and Iljin HySolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Iljin HySolus
The main advantage of trading using opposite Pureun Mutual and Iljin HySolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Iljin HySolus 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 Iljin HySolus will offset losses from the drop in Iljin HySolus' long position.| Pureun Mutual vs. CU Tech Corp | Pureun Mutual vs. Orbitech Co | Pureun Mutual vs. Moadata Co | Pureun Mutual vs. NICE Information Service |
| Iljin HySolus vs. Daol Investment Securities | Iljin HySolus vs. Jeju Beer Co | Iljin HySolus vs. KTB Investment Securities | Iljin HySolus vs. Pureun Mutual Savings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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