Correlation Between Korea Shipbuilding and Korea Information
Can any of the company-specific risk be diversified away by investing in both Korea Shipbuilding and Korea Information 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 Korea Shipbuilding and Korea Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Shipbuilding Offshore and Korea Information Engineering, you can compare the effects of market volatilities on Korea Shipbuilding and Korea Information 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 Korea Shipbuilding with a short position of Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Shipbuilding and Korea Information.
Diversification Opportunities for Korea Shipbuilding and Korea Information
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Shipbuilding Offshore and Korea Information Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information and Korea Shipbuilding 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 Korea Shipbuilding Offshore are associated (or correlated) with Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Korea Shipbuilding i.e., Korea Shipbuilding and Korea Information go up and down completely randomly.
Pair Corralation between Korea Shipbuilding and Korea Information
Assuming the 90 days trading horizon Korea Shipbuilding Offshore is expected to generate 1.65 times more return on investment than Korea Information. However, Korea Shipbuilding is 1.65 times more volatile than Korea Information Engineering. It trades about 0.22 of its potential returns per unit of risk. Korea Information Engineering is currently generating about -0.24 per unit of risk. If you would invest 19,050,000 in Korea Shipbuilding Offshore on August 29, 2024 and sell it today you would earn a total of 2,550,000 from holding Korea Shipbuilding Offshore or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Shipbuilding Offshore vs. Korea Information Engineering
Performance |
| Timeline |
| Korea Shipbuilding |
| Korea Information |
Korea Shipbuilding and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Shipbuilding and Korea Information
The main advantage of trading using opposite Korea Shipbuilding and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Shipbuilding position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Korea Shipbuilding vs. Samsung Electronics Co | Korea Shipbuilding vs. Samsung Electronics Co | Korea Shipbuilding vs. Hyundai Motor Co | Korea Shipbuilding vs. Hyundai Motor |
| Korea Information vs. Korea Real Estate | Korea Information vs. Korea Ratings Co | Korea Information vs. IQuest Co | Korea Information vs. Wonbang Tech 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |