Correlation Between Playgram and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Playgram and Grand Korea 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 Grand Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and Grand Korea Leisure, you can compare the effects of market volatilities on Playgram and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and Grand Korea.
Diversification Opportunities for Playgram and Grand Korea
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playgram and Grand is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Playgram i.e., Playgram and Grand Korea go up and down completely randomly.
Pair Corralation between Playgram and Grand Korea
Assuming the 90 days trading horizon Playgram Co is expected to generate 2.5 times more return on investment than Grand Korea. However, Playgram is 2.5 times more volatile than Grand Korea Leisure. It trades about 0.08 of its potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.07 per unit of risk. If you would invest 34,400 in Playgram Co on September 12, 2024 and sell it today you would earn a total of 2,300 from holding Playgram Co or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playgram Co vs. Grand Korea Leisure
Performance |
| Timeline |
| Playgram |
| Grand Korea Leisure |
Playgram and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and Grand Korea
The main advantage of trading using opposite Playgram and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Playgram vs. Seoul Electronics Telecom | Playgram vs. ECSTELECOM Co | Playgram vs. Samlip General Foods | Playgram vs. Sejong Telecom |
| Grand Korea vs. Handok Clean Tech | Grand Korea vs. Samsung Life Insurance | Grand Korea vs. Tae Kyung Chemical | Grand Korea vs. Asiana Airlines |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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