Correlation Between Korea Information and Polaris Office
Can any of the company-specific risk be diversified away by investing in both Korea Information and Polaris Office 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 Korea Information and Polaris Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and Polaris Office Corp, you can compare the effects of market volatilities on Korea Information and Polaris Office 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 Korea Information with a short position of Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Polaris Office.
Diversification Opportunities for Korea Information and Polaris Office
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and Polaris is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp and Korea Information 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 Korea Information Communications are associated (or correlated) with Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of Korea Information i.e., Korea Information and Polaris Office go up and down completely randomly.
Pair Corralation between Korea Information and Polaris Office
Assuming the 90 days trading horizon Korea Information Communications is expected to under-perform the Polaris Office. But the stock apears to be less risky and, when comparing its historical volatility, Korea Information Communications is 3.66 times less risky than Polaris Office. The stock trades about -0.1 of its potential returns per unit of risk. The Polaris Office Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 549,000 in Polaris Office Corp on September 20, 2024 and sell it today you would earn a total of 50,000 from holding Polaris Office Corp or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Communicatio vs. Polaris Office Corp
Performance |
| Timeline |
| Korea Information |
| Polaris Office Corp |
Korea Information and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Polaris Office
The main advantage of trading using opposite Korea Information and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office's long position.| Korea Information vs. Dongwoo Farm To | Korea Information vs. GS Engineering Construction | Korea Information vs. Shinsegae Food | Korea Information vs. FOODWELL Co |
| Polaris Office vs. Adaptive Plasma Technology | Polaris Office vs. Samsung Publishing Co | Polaris Office vs. Neungyule Education | Polaris Office vs. Hanjin Transportation 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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |