Correlation Between Ilji Technology and Korea Ratings
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Korea Ratings 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 Ilji Technology and Korea Ratings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Korea Ratings Co, you can compare the effects of market volatilities on Ilji Technology and Korea Ratings 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 Ilji Technology with a short position of Korea Ratings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Korea Ratings.
Diversification Opportunities for Ilji Technology and Korea Ratings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ilji and Korea is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Korea Ratings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Ratings and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Korea Ratings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Ratings has no effect on the direction of Ilji Technology i.e., Ilji Technology and Korea Ratings go up and down completely randomly.
Pair Corralation between Ilji Technology and Korea Ratings
Assuming the 90 days trading horizon Ilji Technology Co is expected to under-perform the Korea Ratings. In addition to that, Ilji Technology is 3.07 times more volatile than Korea Ratings Co. It trades about -0.13 of its total potential returns per unit of risk. Korea Ratings Co is currently generating about 0.22 per unit of volatility. If you would invest 8,340,000 in Korea Ratings Co on September 3, 2024 and sell it today you would earn a total of 460,000 from holding Korea Ratings Co or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Korea Ratings Co
Performance |
| Timeline |
| Ilji Technology |
| Korea Ratings |
Ilji Technology and Korea Ratings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Korea Ratings
The main advantage of trading using opposite Ilji Technology and Korea Ratings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Korea Ratings 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 Ratings will offset losses from the drop in Korea Ratings' long position.| Ilji Technology vs. Korea Real Estate | Ilji Technology vs. Busan Industrial Co | Ilji Technology vs. UNISEM Co | Ilji Technology vs. RPBio Inc |
| Korea Ratings vs. Ilji Technology Co | Korea Ratings vs. LG Electronics Pfd | Korea Ratings vs. Korean Air Lines | Korea Ratings vs. KyungIn Electronics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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