Correlation Between Koryo Credit and Mercury
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Mercury 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 Mercury 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 Mercury, you can compare the effects of market volatilities on Koryo Credit and Mercury 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 Mercury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Mercury.
Diversification Opportunities for Koryo Credit and Mercury
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and Mercury is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Mercury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercury 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 Mercury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercury has no effect on the direction of Koryo Credit i.e., Koryo Credit and Mercury go up and down completely randomly.
Pair Corralation between Koryo Credit and Mercury
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.36 times more return on investment than Mercury. However, Koryo Credit Information is 2.75 times less risky than Mercury. It trades about -0.03 of its potential returns per unit of risk. Mercury is currently generating about -0.05 per unit of risk. If you would invest 1,100,504 in Koryo Credit Information on September 4, 2024 and sell it today you would lose (63,504) from holding Koryo Credit Information or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Mercury
Performance |
| Timeline |
| Koryo Credit Information |
| Mercury |
Koryo Credit and Mercury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Mercury
The main advantage of trading using opposite Koryo Credit and Mercury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Mercury 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 Mercury will offset losses from the drop in Mercury's long position.| Koryo Credit vs. LG Display | Koryo Credit vs. Hyundai Motor | Koryo Credit vs. Hyundai Motor Co | Koryo Credit vs. Hyundai Motor Co |
| Mercury vs. Digital Power Communications | Mercury vs. Automobile Pc | Mercury vs. Dongbang Transport Logistics | Mercury vs. Korea Computer |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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