Correlation Between Pungguk Ethanol and SK Holdings
Can any of the company-specific risk be diversified away by investing in both Pungguk Ethanol and SK Holdings 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 SK Holdings 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 SK Holdings Co, you can compare the effects of market volatilities on Pungguk Ethanol and SK Holdings 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 SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pungguk Ethanol and SK Holdings.
Diversification Opportunities for Pungguk Ethanol and SK Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pungguk and 034730 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pungguk Ethanol Industrial and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Holdings 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 SK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Holdings has no effect on the direction of Pungguk Ethanol i.e., Pungguk Ethanol and SK Holdings go up and down completely randomly.
Pair Corralation between Pungguk Ethanol and SK Holdings
Assuming the 90 days trading horizon Pungguk Ethanol Industrial is expected to generate 0.37 times more return on investment than SK Holdings. However, Pungguk Ethanol Industrial is 2.67 times less risky than SK Holdings. It trades about -0.14 of its potential returns per unit of risk. SK Holdings Co is currently generating about -0.14 per unit of risk. If you would invest 1,023,000 in Pungguk Ethanol Industrial on September 3, 2024 and sell it today you would lose (36,000) from holding Pungguk Ethanol Industrial or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pungguk Ethanol Industrial vs. SK Holdings Co
Performance |
| Timeline |
| Pungguk Ethanol Indu |
| SK Holdings |
Pungguk Ethanol and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pungguk Ethanol and SK Holdings
The main advantage of trading using opposite Pungguk Ethanol and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pungguk Ethanol position performs unexpectedly, SK Holdings 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 SK Holdings will offset losses from the drop in SK Holdings' long position.| Pungguk Ethanol vs. SCI Information Service | Pungguk Ethanol vs. Cots Technology Co | Pungguk Ethanol vs. Shinsegae Information Communication | Pungguk Ethanol vs. Taegu Broadcasting |
| SK Holdings vs. Okins Electronics Co | SK Holdings vs. LG Electronics Pfd | SK Holdings vs. Samyoung Electronics Co | SK Holdings vs. Sunny Electronics Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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