Correlation Between Pungguk Ethanol and SHINWON STRUCTION
Can any of the company-specific risk be diversified away by investing in both Pungguk Ethanol and SHINWON STRUCTION 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 Pungguk Ethanol and SHINWON STRUCTION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pungguk Ethanol Industrial and SHINWON STRUCTION COMPANY, you can compare the effects of market volatilities on Pungguk Ethanol and SHINWON STRUCTION 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 Pungguk Ethanol with a short position of SHINWON STRUCTION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pungguk Ethanol and SHINWON STRUCTION.
Diversification Opportunities for Pungguk Ethanol and SHINWON STRUCTION
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pungguk and SHINWON is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pungguk Ethanol Industrial and SHINWON STRUCTION COMPANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHINWON STRUCTION PANY and Pungguk Ethanol 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 Pungguk Ethanol Industrial are associated (or correlated) with SHINWON STRUCTION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHINWON STRUCTION PANY has no effect on the direction of Pungguk Ethanol i.e., Pungguk Ethanol and SHINWON STRUCTION go up and down completely randomly.
Pair Corralation between Pungguk Ethanol and SHINWON STRUCTION
Assuming the 90 days trading horizon Pungguk Ethanol Industrial is expected to generate 0.58 times more return on investment than SHINWON STRUCTION. However, Pungguk Ethanol Industrial is 1.74 times less risky than SHINWON STRUCTION. It trades about -0.03 of its potential returns per unit of risk. SHINWON STRUCTION COMPANY is currently generating about -0.02 per unit of risk. If you would invest 1,353,160 in Pungguk Ethanol Industrial on September 4, 2024 and sell it today you would lose (379,160) from holding Pungguk Ethanol Industrial or give up 28.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Pungguk Ethanol Industrial vs. SHINWON STRUCTION COMPANY
Performance |
| Timeline |
| Pungguk Ethanol Indu |
| SHINWON STRUCTION PANY |
Pungguk Ethanol and SHINWON STRUCTION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pungguk Ethanol and SHINWON STRUCTION
The main advantage of trading using opposite Pungguk Ethanol and SHINWON STRUCTION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pungguk Ethanol position performs unexpectedly, SHINWON STRUCTION 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 SHINWON STRUCTION will offset losses from the drop in SHINWON STRUCTION's long position.| Pungguk Ethanol vs. Tae Kyung Chemical | Pungguk Ethanol vs. Kukdong Oil Chemicals | Pungguk Ethanol vs. Miwon Chemical | Pungguk Ethanol vs. Daehan Synthetic Fiber |
| SHINWON STRUCTION vs. LG Display | SHINWON STRUCTION vs. Hyundai Motor | SHINWON STRUCTION vs. Hyundai Motor Co | SHINWON STRUCTION vs. Hyundai Motor 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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