Correlation Between Koryo Credit and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Tae Kyung 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 Tae Kyung 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 Tae Kyung Chemical, you can compare the effects of market volatilities on Koryo Credit and Tae Kyung 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 Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Tae Kyung.
Diversification Opportunities for Koryo Credit and Tae Kyung
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koryo and Tae is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung 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 Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Koryo Credit i.e., Koryo Credit and Tae Kyung go up and down completely randomly.
Pair Corralation between Koryo Credit and Tae Kyung
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.95 times more return on investment than Tae Kyung. However, Koryo Credit Information is 1.06 times less risky than Tae Kyung. It trades about 0.05 of its potential returns per unit of risk. Tae Kyung Chemical is currently generating about 0.01 per unit of risk. If you would invest 989,000 in Koryo Credit Information on August 28, 2024 and sell it today you would earn a total of 13,000 from holding Koryo Credit Information or generate 1.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Koryo Credit Information vs. Tae Kyung Chemical
Performance |
Timeline |
Koryo Credit Information |
Tae Kyung Chemical |
Koryo Credit and Tae Kyung Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koryo Credit and Tae Kyung
The main advantage of trading using opposite Koryo Credit and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.Koryo Credit vs. Eagle Veterinary Technology | Koryo Credit vs. Daou Technology | Koryo Credit vs. NewFlex Technology Co | Koryo Credit vs. Puloon Technology |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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