Correlation Between Bookook Steel and Gyeongnam Steel
Can any of the company-specific risk be diversified away by investing in both Bookook Steel and Gyeongnam Steel 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 Bookook Steel and Gyeongnam Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bookook Steel and Gyeongnam Steel Co, you can compare the effects of market volatilities on Bookook Steel and Gyeongnam Steel 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 Bookook Steel with a short position of Gyeongnam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bookook Steel and Gyeongnam Steel.
Diversification Opportunities for Bookook Steel and Gyeongnam Steel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bookook and Gyeongnam is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bookook Steel and Gyeongnam Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gyeongnam Steel and Bookook Steel 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 Bookook Steel are associated (or correlated) with Gyeongnam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gyeongnam Steel has no effect on the direction of Bookook Steel i.e., Bookook Steel and Gyeongnam Steel go up and down completely randomly.
Pair Corralation between Bookook Steel and Gyeongnam Steel
Assuming the 90 days trading horizon Bookook Steel is expected to under-perform the Gyeongnam Steel. In addition to that, Bookook Steel is 1.94 times more volatile than Gyeongnam Steel Co. It trades about -0.01 of its total potential returns per unit of risk. Gyeongnam Steel Co is currently generating about 0.0 per unit of volatility. If you would invest 294,680 in Gyeongnam Steel Co on September 1, 2024 and sell it today you would lose (5,180) from holding Gyeongnam Steel Co or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bookook Steel vs. Gyeongnam Steel Co
Performance |
| Timeline |
| Bookook Steel |
| Gyeongnam Steel |
Bookook Steel and Gyeongnam Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bookook Steel and Gyeongnam Steel
The main advantage of trading using opposite Bookook Steel and Gyeongnam Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bookook Steel position performs unexpectedly, Gyeongnam Steel 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 Gyeongnam Steel will offset losses from the drop in Gyeongnam Steel's long position.| Bookook Steel vs. Settlebank | Bookook Steel vs. DB Financial Investment | Bookook Steel vs. PJ Electronics Co | Bookook Steel vs. Korea Electronic Certification |
| Gyeongnam Steel vs. Keum Kang Steel | Gyeongnam Steel vs. Tplex Co | Gyeongnam Steel vs. Jeil Steel Mfg | Gyeongnam Steel vs. Daedong Steel 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |