Correlation Between Koryo Credit and Okins Electronics
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Okins Electronics 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 Okins Electronics 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 Okins Electronics Co, you can compare the effects of market volatilities on Koryo Credit and Okins Electronics 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 Okins Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Okins Electronics.
Diversification Opportunities for Koryo Credit and Okins Electronics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koryo and Okins is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Okins Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okins Electronics 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 Okins Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okins Electronics has no effect on the direction of Koryo Credit i.e., Koryo Credit and Okins Electronics go up and down completely randomly.
Pair Corralation between Koryo Credit and Okins Electronics
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the Okins Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 11.22 times less risky than Okins Electronics. The stock trades about -0.32 of its potential returns per unit of risk. The Okins Electronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 513,000 in Okins Electronics Co on November 7, 2024 and sell it today you would earn a total of 16,000 from holding Okins Electronics Co or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Koryo Credit Information vs. Okins Electronics Co
Performance |
| Timeline |
| Koryo Credit Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Okins Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Koryo Credit and Okins Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Okins Electronics
The main advantage of trading using opposite Koryo Credit and Okins Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Okins Electronics 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 Okins Electronics will offset losses from the drop in Okins Electronics' long position.| Koryo Credit vs. SAMG Entertainment Co | Koryo Credit vs. Posco Chemical Co | Koryo Credit vs. Playgram Co | Koryo Credit vs. Genie Music |
| Okins Electronics vs. Polaris Office Corp | Okins Electronics vs. Asia Technology Co | Okins Electronics vs. Samick Musical Instruments |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |