Correlation Between Koryo Credit and SH Energy
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and SH Energy 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 Koryo Credit and SH Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and SH Energy Chemical, you can compare the effects of market volatilities on Koryo Credit and SH Energy 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 Koryo Credit with a short position of SH Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and SH Energy.
Diversification Opportunities for Koryo Credit and SH Energy
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koryo and 002360 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and SH Energy Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SH Energy Chemical and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with SH Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SH Energy Chemical has no effect on the direction of Koryo Credit i.e., Koryo Credit and SH Energy go up and down completely randomly.
Pair Corralation between Koryo Credit and SH Energy
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.27 times more return on investment than SH Energy. However, Koryo Credit Information is 3.72 times less risky than SH Energy. It trades about 0.19 of its potential returns per unit of risk. SH Energy Chemical is currently generating about -0.1 per unit of risk. If you would invest 994,000 in Koryo Credit Information on September 24, 2024 and sell it today you would earn a total of 39,000 from holding Koryo Credit Information or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. SH Energy Chemical
Performance |
| Timeline |
| Koryo Credit Information |
| SH Energy Chemical |
Koryo Credit and SH Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and SH Energy
The main advantage of trading using opposite Koryo Credit and SH Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, SH Energy 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 SH Energy will offset losses from the drop in SH Energy's long position.| Koryo Credit vs. Shinsegae Engineering Construction | Koryo Credit vs. Samhyun Steel Co | Koryo Credit vs. Seoam Machinery Industry | Koryo Credit vs. Tuksu Engineering ConstructionLtd |
| SH Energy vs. Koh Young Technology | SH Energy vs. Koryo Credit Information | SH Energy vs. KakaoBank Corp | SH Energy vs. KB Financial Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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