Correlation Between Korea Real and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Korea Real and Intellian Technologies 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 Real and Intellian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Real Estate and Intellian Technologies, you can compare the effects of market volatilities on Korea Real and Intellian Technologies 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 Real with a short position of Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Real and Intellian Technologies.
Diversification Opportunities for Korea Real and Intellian Technologies
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Korea and Intellian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Korea Real Estate and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies and Korea Real 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 Real Estate are associated (or correlated) with Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Korea Real i.e., Korea Real and Intellian Technologies go up and down completely randomly.
Pair Corralation between Korea Real and Intellian Technologies
Assuming the 90 days trading horizon Korea Real Estate is expected to generate 0.29 times more return on investment than Intellian Technologies. However, Korea Real Estate is 3.46 times less risky than Intellian Technologies. It trades about -0.04 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.03 per unit of risk. If you would invest 121,875 in Korea Real Estate on January 26, 2025 and sell it today you would lose (19,675) from holding Korea Real Estate or give up 16.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Korea Real Estate vs. Intellian Technologies
Performance |
| Timeline |
| Korea Real Estate |
| Intellian Technologies |
Korea Real and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Real and Intellian Technologies
The main advantage of trading using opposite Korea Real and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Real position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Korea Real vs. Digital Power Communications | Korea Real vs. Mobileleader CoLtd | Korea Real vs. Nable Communications | Korea Real vs. Eugene Investment Securities |
| Intellian Technologies vs. Daedong Metals Co | Intellian Technologies vs. iNtRON Biotechnology | Intellian Technologies vs. Cots Technology Co | Intellian Technologies vs. Shinhan Inverse Copper |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |