Correlation Between Korea Ratings and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Korea Ratings and Puloon Technology 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 Ratings and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Ratings Co and Puloon Technology, you can compare the effects of market volatilities on Korea Ratings and Puloon Technology 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 Ratings with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Ratings and Puloon Technology.
Diversification Opportunities for Korea Ratings and Puloon Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Puloon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Korea Ratings Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Korea Ratings 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 Ratings Co are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Korea Ratings i.e., Korea Ratings and Puloon Technology go up and down completely randomly.
Pair Corralation between Korea Ratings and Puloon Technology
Assuming the 90 days trading horizon Korea Ratings Co is expected to generate 0.36 times more return on investment than Puloon Technology. However, Korea Ratings Co is 2.8 times less risky than Puloon Technology. It trades about 0.12 of its potential returns per unit of risk. Puloon Technology is currently generating about -0.13 per unit of risk. If you would invest 8,600,000 in Korea Ratings Co on August 28, 2024 and sell it today you would earn a total of 280,000 from holding Korea Ratings Co or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Ratings Co vs. Puloon Technology
Performance |
| Timeline |
| Korea Ratings |
| Puloon Technology |
Korea Ratings and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Ratings and Puloon Technology
The main advantage of trading using opposite Korea Ratings and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Ratings position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Korea Ratings vs. Samsung Electronics Co | Korea Ratings vs. Samsung Electronics Co | Korea Ratings vs. LG Energy Solution | Korea Ratings vs. SK Hynix |
| Puloon Technology vs. Korea Real Estate | Puloon Technology vs. Korea Ratings Co | Puloon Technology vs. IQuest Co | Puloon Technology vs. Wonbang Tech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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