Correlation Between Koryo Credit and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Wonbang Tech 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 Wonbang Tech 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 Wonbang Tech Co, you can compare the effects of market volatilities on Koryo Credit and Wonbang Tech 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 Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Wonbang Tech.
Diversification Opportunities for Koryo Credit and Wonbang Tech
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and Wonbang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech 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 Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Koryo Credit i.e., Koryo Credit and Wonbang Tech go up and down completely randomly.
Pair Corralation between Koryo Credit and Wonbang Tech
Assuming the 90 days trading horizon Koryo Credit is expected to generate 29.38 times less return on investment than Wonbang Tech. But when comparing it to its historical volatility, Koryo Credit Information is 3.02 times less risky than Wonbang Tech. It trades about 0.0 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,016,798 in Wonbang Tech Co on December 4, 2024 and sell it today you would earn a total of 288,202 from holding Wonbang Tech Co or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Koryo Credit Information vs. Wonbang Tech Co
Performance |
| Timeline |
| Koryo Credit Information |
| Wonbang Tech |
Koryo Credit and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Wonbang Tech
The main advantage of trading using opposite Koryo Credit and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| Koryo Credit vs. Hyundai Industrial Co | Koryo Credit vs. Dongil Metal Co | Koryo Credit vs. Jeju Beer Co | Koryo Credit vs. Handok Clean Tech |
| Wonbang Tech vs. Kyeryong Construction Industrial | Wonbang Tech vs. Heungkuk Metaltech CoLtd | Wonbang Tech vs. Namkwang Engineering Construction | Wonbang Tech vs. SEOJEON ELECTRIC MACHINERY |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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