Correlation Between Koryo Credit and ED
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and ED 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 ED 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 ED Co, you can compare the effects of market volatilities on Koryo Credit and ED 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 ED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and ED.
Diversification Opportunities for Koryo Credit and ED
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and ED is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and ED Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Co 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 ED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Co has no effect on the direction of Koryo Credit i.e., Koryo Credit and ED go up and down completely randomly.
Pair Corralation between Koryo Credit and ED
Assuming the 90 days trading horizon Koryo Credit is expected to generate 9.26 times less return on investment than ED. But when comparing it to its historical volatility, Koryo Credit Information is 3.99 times less risky than ED. It trades about 0.01 of its potential returns per unit of risk. ED Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,076,976 in ED Co on October 7, 2024 and sell it today you would earn a total of 118,024 from holding ED Co or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. ED Co
Performance |
| Timeline |
| Koryo Credit Information |
| ED Co |
Koryo Credit and ED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and ED
The main advantage of trading using opposite Koryo Credit and ED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, ED 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 ED will offset losses from the drop in ED's long position.| Koryo Credit vs. Woori Financial Group | Koryo Credit vs. Jb Financial | Koryo Credit vs. Nh Investment And | Koryo Credit vs. Hyundai Heavy Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |