Correlation Between Koryo Credit and Hwangkum Steel
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Hwangkum Steel 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 Hwangkum Steel 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 Hwangkum Steel Technology, you can compare the effects of market volatilities on Koryo Credit and Hwangkum Steel 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 Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Hwangkum Steel.
Diversification Opportunities for Koryo Credit and Hwangkum Steel
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and Hwangkum is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology 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 Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of Koryo Credit i.e., Koryo Credit and Hwangkum Steel go up and down completely randomly.
Pair Corralation between Koryo Credit and Hwangkum Steel
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.73 times more return on investment than Hwangkum Steel. However, Koryo Credit Information is 1.37 times less risky than Hwangkum Steel. It trades about 0.0 of its potential returns per unit of risk. Hwangkum Steel Technology is currently generating about -0.04 per unit of risk. If you would invest 1,008,231 in Koryo Credit Information on October 18, 2024 and sell it today you would lose (1,231) from holding Koryo Credit Information or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Hwangkum Steel Technology
Performance |
| Timeline |
| Koryo Credit Information |
| Hwangkum Steel Technology |
Koryo Credit and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Hwangkum Steel
The main advantage of trading using opposite Koryo Credit and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| Koryo Credit vs. Sangsin Energy Display | Koryo Credit vs. HB Technology TD | Koryo Credit vs. GS Retail Co | Koryo Credit vs. SK Chemicals Co |
| Hwangkum Steel vs. Daou Data Corp | Hwangkum Steel vs. Nice Information Telecommunication | Hwangkum Steel vs. Koryo Credit Information | Hwangkum Steel vs. Lotte Data Communication |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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