Correlation Between Korea Ratings and SS TECH
Can any of the company-specific risk be diversified away by investing in both Korea Ratings and SS TECH 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 SS TECH 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 SS TECH, you can compare the effects of market volatilities on Korea Ratings and SS TECH 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 SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Ratings and SS TECH.
Diversification Opportunities for Korea Ratings and SS TECH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and 101490 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Ratings Co and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH 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 SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Korea Ratings i.e., Korea Ratings and SS TECH go up and down completely randomly.
Pair Corralation between Korea Ratings and SS TECH
Assuming the 90 days trading horizon Korea Ratings Co is expected to generate 0.19 times more return on investment than SS TECH. However, Korea Ratings Co is 5.2 times less risky than SS TECH. It trades about 0.32 of its potential returns per unit of risk. SS TECH is currently generating about 0.04 per unit of risk. If you would invest 8,480,000 in Korea Ratings Co on August 29, 2024 and sell it today you would earn a total of 400,000 from holding Korea Ratings Co or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Ratings Co vs. SS TECH
Performance |
| Timeline |
| Korea Ratings |
| SS TECH |
Korea Ratings and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Ratings and SS TECH
The main advantage of trading using opposite Korea Ratings and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Ratings position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH'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 |
| SS TECH vs. Korea Real Estate | SS TECH vs. Korea Ratings Co | SS TECH vs. IQuest Co | SS TECH 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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