Correlation Between Playgram and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Playgram and Koryo Credit 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 Playgram and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and Koryo Credit Information, you can compare the effects of market volatilities on Playgram and Koryo Credit 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 Playgram with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and Koryo Credit.
Diversification Opportunities for Playgram and Koryo Credit
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playgram and Koryo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and Playgram 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 Playgram Co are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Playgram i.e., Playgram and Koryo Credit go up and down completely randomly.
Pair Corralation between Playgram and Koryo Credit
Assuming the 90 days trading horizon Playgram Co is expected to generate 4.58 times more return on investment than Koryo Credit. However, Playgram is 4.58 times more volatile than Koryo Credit Information. It trades about 0.0 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.01 per unit of risk. If you would invest 52,300 in Playgram Co on August 25, 2024 and sell it today you would lose (13,900) from holding Playgram Co or give up 26.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playgram Co vs. Koryo Credit Information
Performance |
| Timeline |
| Playgram |
| Koryo Credit Information |
Playgram and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and Koryo Credit
The main advantage of trading using opposite Playgram and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Lotte Chemical Corp | Playgram vs. Hyundai Steel |
| Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. Hyundai Motor Co | Koryo Credit vs. Hyundai Motor |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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