Correlation Between Koryo Credit and Dongwoo Farm
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Dongwoo Farm 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 Dongwoo Farm 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 Dongwoo Farm To, you can compare the effects of market volatilities on Koryo Credit and Dongwoo Farm 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 Dongwoo Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Dongwoo Farm.
Diversification Opportunities for Koryo Credit and Dongwoo Farm
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Koryo and Dongwoo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Dongwoo Farm To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoo Farm To 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 Dongwoo Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoo Farm To has no effect on the direction of Koryo Credit i.e., Koryo Credit and Dongwoo Farm go up and down completely randomly.
Pair Corralation between Koryo Credit and Dongwoo Farm
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the Dongwoo Farm. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 1.31 times less risky than Dongwoo Farm. The stock trades about -0.29 of its potential returns per unit of risk. The Dongwoo Farm To is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 193,000 in Dongwoo Farm To on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Dongwoo Farm To or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Dongwoo Farm To
Performance |
| Timeline |
| Koryo Credit Information |
| Dongwoo Farm To |
Koryo Credit and Dongwoo Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Dongwoo Farm
The main advantage of trading using opposite Koryo Credit and Dongwoo Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Dongwoo Farm 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 Dongwoo Farm will offset losses from the drop in Dongwoo Farm's long position.| Koryo Credit vs. Dongwoo Farm To | Koryo Credit vs. Seohee Construction Co | Koryo Credit vs. Camus Engineering Construction | Koryo Credit vs. Woorim Machinery Co |
| Dongwoo Farm vs. Daiyang Metal Co | Dongwoo Farm vs. Ssangyong Information Communication | Dongwoo Farm vs. Heungkuk Metaltech CoLtd | Dongwoo Farm vs. Choil Aluminum |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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