Correlation Between Koryo Credit and Sungwoo Electronics
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Sungwoo 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 Sungwoo 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 Sungwoo Electronics Co, you can compare the effects of market volatilities on Koryo Credit and Sungwoo 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 Sungwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Sungwoo Electronics.
Diversification Opportunities for Koryo Credit and Sungwoo Electronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koryo and Sungwoo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Sungwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo 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 Sungwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Electronics has no effect on the direction of Koryo Credit i.e., Koryo Credit and Sungwoo Electronics go up and down completely randomly.
Pair Corralation between Koryo Credit and Sungwoo Electronics
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.3 times more return on investment than Sungwoo Electronics. However, Koryo Credit Information is 3.36 times less risky than Sungwoo Electronics. It trades about -0.02 of its potential returns per unit of risk. Sungwoo Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 1,046,000 in Koryo Credit Information on September 2, 2024 and sell it today you would lose (15,000) from holding Koryo Credit Information or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Sungwoo Electronics Co
Performance |
| Timeline |
| Koryo Credit Information |
| Sungwoo Electronics |
Koryo Credit and Sungwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Sungwoo Electronics
The main advantage of trading using opposite Koryo Credit and Sungwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Sungwoo 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 Sungwoo Electronics will offset losses from the drop in Sungwoo Electronics' long position.| Koryo Credit vs. Lotte Energy Materials | Koryo Credit vs. Lotte Data Communication | Koryo Credit vs. Nable Communications | Koryo Credit vs. Hana Materials |
| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics vs. Microfriend |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |