Correlation Between Koryo Credit and Semyung Electric
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Semyung Electric 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 Semyung Electric 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 Semyung Electric Machinery, you can compare the effects of market volatilities on Koryo Credit and Semyung Electric 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 Semyung Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Semyung Electric.
Diversification Opportunities for Koryo Credit and Semyung Electric
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koryo and Semyung is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Semyung Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semyung Electric Mac 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 Semyung Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semyung Electric Mac has no effect on the direction of Koryo Credit i.e., Koryo Credit and Semyung Electric go up and down completely randomly.
Pair Corralation between Koryo Credit and Semyung Electric
Assuming the 90 days trading horizon Koryo Credit is expected to generate 5.29 times less return on investment than Semyung Electric. But when comparing it to its historical volatility, Koryo Credit Information is 4.89 times less risky than Semyung Electric. It trades about 0.06 of its potential returns per unit of risk. Semyung Electric Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 277,975 in Semyung Electric Machinery on September 2, 2024 and sell it today you would earn a total of 169,525 from holding Semyung Electric Machinery or generate 60.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Semyung Electric Machinery
Performance |
| Timeline |
| Koryo Credit Information |
| Semyung Electric Mac |
Koryo Credit and Semyung Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Semyung Electric
The main advantage of trading using opposite Koryo Credit and Semyung Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Semyung Electric 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 Semyung Electric will offset losses from the drop in Semyung Electric's long position.| Koryo Credit vs. Lotte Energy Materials | Koryo Credit vs. Lotte Data Communication | Koryo Credit vs. Nable Communications | Koryo Credit vs. Hana Materials |
| Semyung Electric vs. Dawonsys CoLtd | Semyung Electric vs. Robostar CoLtd | Semyung Electric vs. Daebo Magnetic CoLtd | Semyung Electric vs. Vitzro 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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