Correlation Between Koryo Credit and Ray
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Ray 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 Ray 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 Ray Co, you can compare the effects of market volatilities on Koryo Credit and Ray 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 Ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Ray.
Diversification Opportunities for Koryo Credit and Ray
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koryo and Ray is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Ray Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ray 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 Ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ray Co has no effect on the direction of Koryo Credit i.e., Koryo Credit and Ray go up and down completely randomly.
Pair Corralation between Koryo Credit and Ray
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.44 times more return on investment than Ray. However, Koryo Credit Information is 2.29 times less risky than Ray. It trades about 0.01 of its potential returns per unit of risk. Ray Co is currently generating about -0.06 per unit of risk. If you would invest 1,019,748 in Koryo Credit Information on September 3, 2024 and sell it today you would earn a total of 11,252 from holding Koryo Credit Information or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Ray Co
Performance |
| Timeline |
| Koryo Credit Information |
| Ray Co |
Koryo Credit and Ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Ray
The main advantage of trading using opposite Koryo Credit and Ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Ray 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 Ray will offset losses from the drop in Ray'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 |
| Ray vs. Wonil Special Steel | Ray vs. Korea Petro Chemical | Ray vs. JC Chemical Co | Ray vs. Namhae Chemical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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