Correlation Between Korea Information and Actoz Soft
Can any of the company-specific risk be diversified away by investing in both Korea Information and Actoz Soft 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 Actoz Soft 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 Actoz Soft CoLtd, you can compare the effects of market volatilities on Korea Information and Actoz Soft 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 Actoz Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Actoz Soft.
Diversification Opportunities for Korea Information and Actoz Soft
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korea and Actoz is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and Actoz Soft CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actoz Soft CoLtd 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 Actoz Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actoz Soft CoLtd has no effect on the direction of Korea Information i.e., Korea Information and Actoz Soft go up and down completely randomly.
Pair Corralation between Korea Information and Actoz Soft
Assuming the 90 days trading horizon Korea Information Communications is expected to under-perform the Actoz Soft. But the stock apears to be less risky and, when comparing its historical volatility, Korea Information Communications is 2.61 times less risky than Actoz Soft. The stock trades about -0.02 of its potential returns per unit of risk. The Actoz Soft CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 650,000 in Actoz Soft CoLtd on September 12, 2024 and sell it today you would earn a total of 33,000 from holding Actoz Soft CoLtd or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.69% |
| Values | Daily Returns |
Korea Information Communicatio vs. Actoz Soft CoLtd
Performance |
| Timeline |
| Korea Information |
| Actoz Soft CoLtd |
Korea Information and Actoz Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Actoz Soft
The main advantage of trading using opposite Korea Information and Actoz Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, Actoz Soft 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 Actoz Soft will offset losses from the drop in Actoz Soft's long position.| Korea Information vs. Cube Entertainment | Korea Information vs. Dreamus Company | Korea Information vs. LG Energy Solution | Korea Information vs. Dongwon System |
| Actoz Soft vs. Nice Information Telecommunication | Actoz Soft vs. Sejong Telecom | Actoz Soft vs. Korea Information Communications | Actoz Soft vs. Ssangyong Information Communication |
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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