Correlation Between Koryo Credit and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Ewon Comfortech 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 Ewon Comfortech 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 Ewon Comfortech Co, you can compare the effects of market volatilities on Koryo Credit and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Ewon Comfortech.
Diversification Opportunities for Koryo Credit and Ewon Comfortech
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koryo and Ewon is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of Koryo Credit i.e., Koryo Credit and Ewon Comfortech go up and down completely randomly.
Pair Corralation between Koryo Credit and Ewon Comfortech
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.24 times more return on investment than Ewon Comfortech. However, Koryo Credit Information is 4.13 times less risky than Ewon Comfortech. It trades about -0.04 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.05 per unit of risk. If you would invest 1,100,504 in Koryo Credit Information on September 3, 2024 and sell it today you would lose (69,504) from holding Koryo Credit Information or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Ewon Comfortech Co
Performance |
| Timeline |
| Koryo Credit Information |
| Ewon Comfortech |
Koryo Credit and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Ewon Comfortech
The main advantage of trading using opposite Koryo Credit and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| Koryo Credit vs. Camus Engineering Construction | Koryo Credit vs. Dongkuk Structures Construction | Koryo Credit vs. Sam Yang Foods | Koryo Credit vs. Seoam Machinery Industry |
| Ewon Comfortech vs. Korea Real Estate | Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech vs. UNISEM Co | Ewon Comfortech vs. RPBio Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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