Correlation Between Koryo Credit and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Koryo Credit and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and BNK Financial.
Diversification Opportunities for Koryo Credit and BNK Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koryo and BNK is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Koryo Credit i.e., Koryo Credit and BNK Financial go up and down completely randomly.
Pair Corralation between Koryo Credit and BNK Financial
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the BNK Financial. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 2.11 times less risky than BNK Financial. The stock trades about -0.32 of its potential returns per unit of risk. The BNK Financial Group is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 1,040,000 in BNK Financial Group on November 7, 2024 and sell it today you would earn a total of 176,000 from holding BNK Financial Group or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. BNK Financial Group
Performance |
| Timeline |
| Koryo Credit Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| BNK Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Koryo Credit and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and BNK Financial
The main advantage of trading using opposite Koryo Credit and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Koryo Credit vs. SAMG Entertainment Co | Koryo Credit vs. Posco Chemical Co | Koryo Credit vs. Playgram Co | Koryo Credit vs. Genie Music |
| BNK Financial vs. Shinhan Financial Group | BNK Financial vs. Woori Technology | BNK Financial vs. Dongbang Transport Logistics | BNK Financial vs. AeroSpace Technology of |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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