Correlation Between Ilji Technology and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Ilji Technology 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 Ilji Technology and Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Ilji Technology 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 Ilji Technology with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Koryo Credit.
Diversification Opportunities for Ilji Technology and Koryo Credit
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ilji and Koryo is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology 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 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 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 Ilji Technology i.e., Ilji Technology and Koryo Credit go up and down completely randomly.
Pair Corralation between Ilji Technology and Koryo Credit
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 3.5 times more return on investment than Koryo Credit. However, Ilji Technology is 3.5 times more volatile than Koryo Credit Information. It trades about 0.12 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.32 per unit of risk. If you would invest 369,500 in Ilji Technology Co on November 7, 2024 and sell it today you would earn a total of 19,500 from holding Ilji Technology Co or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Ilji Technology Co vs. Koryo Credit Information
Performance |
| Timeline |
| Ilji Technology |
| Koryo Credit Information |
Ilji Technology and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Koryo Credit
The main advantage of trading using opposite Ilji Technology and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology 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.| Ilji Technology vs. Samsung Electronics Co | Ilji Technology vs. Samsung Electronics Co | Ilji Technology vs. Hyundai Motor Co | Ilji Technology vs. LG Electronics |
| Koryo Credit vs. SAMG Entertainment Co | Koryo Credit vs. Posco Chemical Co | Koryo Credit vs. Playgram Co | Koryo Credit vs. Genie Music |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |