Correlation Between Asiana Airlines and Lotte Non
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Lotte Non 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 Asiana Airlines and Lotte Non into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Lotte Non Life Insurance, you can compare the effects of market volatilities on Asiana Airlines and Lotte Non 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 Asiana Airlines with a short position of Lotte Non. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Lotte Non.
Diversification Opportunities for Asiana Airlines and Lotte Non
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asiana and Lotte is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Lotte Non Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Non Life and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Lotte Non. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Non Life has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Lotte Non go up and down completely randomly.
Pair Corralation between Asiana Airlines and Lotte Non
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 0.79 times more return on investment than Lotte Non. However, Asiana Airlines is 1.26 times less risky than Lotte Non. It trades about 0.23 of its potential returns per unit of risk. Lotte Non Life Insurance is currently generating about -0.15 per unit of risk. If you would invest 994,000 in Asiana Airlines on August 28, 2024 and sell it today you would earn a total of 105,000 from holding Asiana Airlines or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Lotte Non Life Insurance
Performance |
| Timeline |
| Asiana Airlines |
| Lotte Non Life |
Asiana Airlines and Lotte Non Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Lotte Non
The main advantage of trading using opposite Asiana Airlines and Lotte Non positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Lotte Non 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 Lotte Non will offset losses from the drop in Lotte Non's long position.| Asiana Airlines vs. Home Center Holdings | Asiana Airlines vs. Hyunwoo Industrial Co | Asiana Airlines vs. Daelim Industrial Co | Asiana Airlines vs. Seoyon Topmetal Co |
| Lotte Non vs. AptaBio Therapeutics | Lotte Non vs. Daewoo SBI SPAC | Lotte Non vs. Dream Security co | Lotte Non vs. Microfriend |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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