Correlation Between Korea Electronic and OCI
Can any of the company-specific risk be diversified away by investing in both Korea Electronic and OCI 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 Electronic and OCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Electronic Certification and OCI Co, you can compare the effects of market volatilities on Korea Electronic and OCI 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 Electronic with a short position of OCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electronic and OCI.
Diversification Opportunities for Korea Electronic and OCI
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Korea and OCI is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electronic Certification and OCI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI Co and Korea Electronic 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 Electronic Certification are associated (or correlated) with OCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI Co has no effect on the direction of Korea Electronic i.e., Korea Electronic and OCI go up and down completely randomly.
Pair Corralation between Korea Electronic and OCI
Assuming the 90 days trading horizon Korea Electronic Certification is expected to generate 0.39 times more return on investment than OCI. However, Korea Electronic Certification is 2.53 times less risky than OCI. It trades about 0.23 of its potential returns per unit of risk. OCI Co is currently generating about -0.05 per unit of risk. If you would invest 311,000 in Korea Electronic Certification on November 28, 2024 and sell it today you would earn a total of 19,000 from holding Korea Electronic Certification or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Electronic Certification vs. OCI Co
Performance |
| Timeline |
| Korea Electronic Cer |
| OCI Co |
Korea Electronic and OCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electronic and OCI
The main advantage of trading using opposite Korea Electronic and OCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electronic position performs unexpectedly, OCI 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 OCI will offset losses from the drop in OCI's long position.| Korea Electronic vs. Dongil Metal Co | Korea Electronic vs. Automobile Pc | Korea Electronic vs. Hanjin Transportation Co | Korea Electronic vs. Polaris Office Corp |
| OCI vs. DONGKUK TED METAL | OCI vs. Heungkuk Metaltech CoLtd | OCI vs. System and Application | OCI vs. Kukil Metal 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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