Correlation Between Polaris Office and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Polaris Office and Myoung Shin 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 Polaris Office and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polaris Office Corp and Myoung Shin Industrial, you can compare the effects of market volatilities on Polaris Office and Myoung Shin 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 Polaris Office with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Office and Myoung Shin.
Diversification Opportunities for Polaris Office and Myoung Shin
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polaris and Myoung is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Office Corp and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Polaris Office 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 Polaris Office Corp are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Polaris Office i.e., Polaris Office and Myoung Shin go up and down completely randomly.
Pair Corralation between Polaris Office and Myoung Shin
Assuming the 90 days trading horizon Polaris Office Corp is expected to generate 1.74 times more return on investment than Myoung Shin. However, Polaris Office is 1.74 times more volatile than Myoung Shin Industrial. It trades about 0.0 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.06 per unit of risk. If you would invest 669,000 in Polaris Office Corp on August 25, 2024 and sell it today you would lose (119,000) from holding Polaris Office Corp or give up 17.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polaris Office Corp vs. Myoung Shin Industrial
Performance |
| Timeline |
| Polaris Office Corp |
| Myoung Shin Industrial |
Polaris Office and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polaris Office and Myoung Shin
The main advantage of trading using opposite Polaris Office and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polaris Office position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Polaris Office vs. Korea Real Estate | Polaris Office vs. Korea Ratings Co | Polaris Office vs. IQuest Co | Polaris Office vs. Wonbang Tech Co |
| Myoung Shin vs. Korea Information Engineering | Myoung Shin vs. Shinsegae Information Communication | Myoung Shin vs. Korean Drug Co | Myoung Shin vs. Polaris Office Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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