Correlation Between Koryo Credit and YOUNGHWA TECH
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and YOUNGHWA TECH 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 YOUNGHWA TECH 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 YOUNGHWA TECH Co, you can compare the effects of market volatilities on Koryo Credit and YOUNGHWA TECH 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 YOUNGHWA TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and YOUNGHWA TECH.
Diversification Opportunities for Koryo Credit and YOUNGHWA TECH
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koryo and YOUNGHWA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and YOUNGHWA TECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YOUNGHWA TECH 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 YOUNGHWA TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YOUNGHWA TECH has no effect on the direction of Koryo Credit i.e., Koryo Credit and YOUNGHWA TECH go up and down completely randomly.
Pair Corralation between Koryo Credit and YOUNGHWA TECH
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.69 times more return on investment than YOUNGHWA TECH. However, Koryo Credit Information is 1.46 times less risky than YOUNGHWA TECH. It trades about 0.01 of its potential returns per unit of risk. YOUNGHWA TECH Co is currently generating about -0.02 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. YOUNGHWA TECH Co
Performance |
| Timeline |
| Koryo Credit Information |
| YOUNGHWA TECH |
Koryo Credit and YOUNGHWA TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and YOUNGHWA TECH
The main advantage of trading using opposite Koryo Credit and YOUNGHWA TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, YOUNGHWA TECH 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 YOUNGHWA TECH will offset losses from the drop in YOUNGHWA TECH'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 |
| YOUNGHWA TECH vs. Koryo Credit Information | YOUNGHWA TECH vs. Samyoung Electronics Co | YOUNGHWA TECH vs. Okins Electronics Co | YOUNGHWA TECH vs. Jeong Moon Information |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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