Correlation Between Koryo Credit and KPX Green
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and KPX Green 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 KPX Green 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 KPX Green Chemical, you can compare the effects of market volatilities on Koryo Credit and KPX Green 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 KPX Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and KPX Green.
Diversification Opportunities for Koryo Credit and KPX Green
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koryo and KPX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and KPX Green Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPX Green Chemical 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 KPX Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPX Green Chemical has no effect on the direction of Koryo Credit i.e., Koryo Credit and KPX Green go up and down completely randomly.
Pair Corralation between Koryo Credit and KPX Green
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.46 times more return on investment than KPX Green. However, Koryo Credit Information is 2.18 times less risky than KPX Green. It trades about 0.02 of its potential returns per unit of risk. KPX Green Chemical is currently generating about 0.0 per unit of risk. If you would invest 941,220 in Koryo Credit Information on October 13, 2024 and sell it today you would earn a total of 58,780 from holding Koryo Credit Information or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. KPX Green Chemical
Performance |
| Timeline |
| Koryo Credit Information |
| KPX Green Chemical |
Koryo Credit and KPX Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and KPX Green
The main advantage of trading using opposite Koryo Credit and KPX Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, KPX Green 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 KPX Green will offset losses from the drop in KPX Green's long position.| Koryo Credit vs. Miwon Chemical | Koryo Credit vs. Youl Chon Chemical | Koryo Credit vs. KPX Green Chemical | Koryo Credit vs. Daou Data Corp |
| KPX Green vs. Miwon Chemicals Co | KPX Green vs. Samsung Publishing Co | KPX Green vs. Sajo Seafood | KPX Green vs. FOODWELL 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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