Correlation Between SBI Investment and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both SBI Investment 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 SBI Investment and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Investment KOREA and Koryo Credit Information, you can compare the effects of market volatilities on SBI Investment 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 SBI Investment with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Investment and Koryo Credit.
Diversification Opportunities for SBI Investment and Koryo Credit
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBI and Koryo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SBI Investment KOREA 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 SBI Investment 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 SBI Investment KOREA 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 SBI Investment i.e., SBI Investment and Koryo Credit go up and down completely randomly.
Pair Corralation between SBI Investment and Koryo Credit
Assuming the 90 days trading horizon SBI Investment KOREA is expected to under-perform the Koryo Credit. In addition to that, SBI Investment is 2.89 times more volatile than Koryo Credit Information. It trades about -0.03 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about -0.02 per unit of volatility. If you would invest 1,068,050 in Koryo Credit Information on September 3, 2024 and sell it today you would lose (37,050) from holding Koryo Credit Information or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Investment KOREA vs. Koryo Credit Information
Performance |
| Timeline |
| SBI Investment KOREA |
| Koryo Credit Information |
SBI Investment and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Investment and Koryo Credit
The main advantage of trading using opposite SBI Investment and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Investment 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.| SBI Investment vs. Dongjin Semichem Co | SBI Investment vs. AhnLab Inc | SBI Investment vs. Posco ICT | SBI Investment vs. CJ ENM |
| Koryo Credit vs. Camus Engineering Construction | Koryo Credit vs. Dongkuk Structures Construction | Koryo Credit vs. Sam Yang Foods | Koryo Credit vs. Seoam Machinery Industry |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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