Correlation Between Korea Electric and Busan Ind
Can any of the company-specific risk be diversified away by investing in both Korea Electric and Busan Ind 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 Electric and Busan Ind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Electric Power and Busan Ind, you can compare the effects of market volatilities on Korea Electric and Busan Ind 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 Electric with a short position of Busan Ind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electric and Busan Ind.
Diversification Opportunities for Korea Electric and Busan Ind
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Busan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electric Power and Busan Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Ind and Korea Electric 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 Electric Power are associated (or correlated) with Busan Ind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Ind has no effect on the direction of Korea Electric i.e., Korea Electric and Busan Ind go up and down completely randomly.
Pair Corralation between Korea Electric and Busan Ind
If you would invest 2,310,000 in Korea Electric Power on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Korea Electric Power or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Korea Electric Power vs. Busan Ind
Performance |
| Timeline |
| Korea Electric Power |
| Busan Ind |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Korea Electric and Busan Ind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electric and Busan Ind
The main advantage of trading using opposite Korea Electric and Busan Ind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electric position performs unexpectedly, Busan Ind 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 Busan Ind will offset losses from the drop in Busan Ind's long position.| Korea Electric vs. Sam Yang Foods | Korea Electric vs. Nh Investment And | Korea Electric vs. Seoul Food Industrial | Korea Electric vs. Samyang Foods Co |
| Busan Ind vs. FNC Entertainment Co | Busan Ind vs. Semyung Electric Machinery | Busan Ind vs. Jeju Beer Co | Busan Ind vs. Nasmedia 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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