Correlation Between Pureun Mutual and KakaoBank Corp
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and KakaoBank Corp 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 KakaoBank Corp 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 KakaoBank Corp, you can compare the effects of market volatilities on Pureun Mutual and KakaoBank Corp 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 KakaoBank Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and KakaoBank Corp.
Diversification Opportunities for Pureun Mutual and KakaoBank Corp
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pureun and KakaoBank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and KakaoBank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KakaoBank Corp 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 KakaoBank Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KakaoBank Corp has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and KakaoBank Corp go up and down completely randomly.
Pair Corralation between Pureun Mutual and KakaoBank Corp
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.4 times more return on investment than KakaoBank Corp. However, Pureun Mutual Savings is 2.51 times less risky than KakaoBank Corp. It trades about -0.04 of its potential returns per unit of risk. KakaoBank Corp is currently generating about -0.32 per unit of risk. If you would invest 835,206 in Pureun Mutual Savings on October 23, 2024 and sell it today you would lose (3,206) from holding Pureun Mutual Savings or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. KakaoBank Corp
Performance |
| Timeline |
| Pureun Mutual Savings |
| KakaoBank Corp |
Pureun Mutual and KakaoBank Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and KakaoBank Corp
The main advantage of trading using opposite Pureun Mutual and KakaoBank Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, KakaoBank Corp 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 KakaoBank Corp will offset losses from the drop in KakaoBank Corp's long position.| Pureun Mutual vs. PJ Metal Co | Pureun Mutual vs. Aprogen Healthcare Games | Pureun Mutual vs. Dongil Metal Co | Pureun Mutual vs. Namhwa Industrial Co |
| KakaoBank Corp vs. Shinhan Financial Group | KakaoBank Corp vs. Hana Financial | KakaoBank Corp vs. Woori Financial Group | KakaoBank Corp vs. Industrial Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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