Correlation Between Koryo Credit and Xavis
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Xavis 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 Xavis 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 Xavis Co, you can compare the effects of market volatilities on Koryo Credit and Xavis 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 Xavis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Xavis.
Diversification Opportunities for Koryo Credit and Xavis
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Koryo and Xavis is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Xavis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xavis 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 Xavis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xavis has no effect on the direction of Koryo Credit i.e., Koryo Credit and Xavis go up and down completely randomly.
Pair Corralation between Koryo Credit and Xavis
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.36 times more return on investment than Xavis. However, Koryo Credit Information is 2.81 times less risky than Xavis. It trades about 0.01 of its potential returns per unit of risk. Xavis Co is currently generating about -0.18 per unit of risk. If you would invest 976,846 in Koryo Credit Information on October 24, 2024 and sell it today you would earn a total of 4,154 from holding Koryo Credit Information or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Xavis Co
Performance |
| Timeline |
| Koryo Credit Information |
| Xavis |
Koryo Credit and Xavis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Xavis
The main advantage of trading using opposite Koryo Credit and Xavis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Xavis 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 Xavis will offset losses from the drop in Xavis' long position.| Koryo Credit vs. Phoenix Materials Co | Koryo Credit vs. LS Materials | Koryo Credit vs. Duksan Hi Metal | Koryo Credit vs. Top Material Co |
| Xavis vs. KakaoBank Corp | Xavis vs. Dgb Financial | Xavis vs. Koryo Credit Information | Xavis vs. Korean Drug Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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