Correlation Between Koryo Credit and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and BGF Retail 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 BGF Retail 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 BGF Retail Co, you can compare the effects of market volatilities on Koryo Credit and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and BGF Retail.
Diversification Opportunities for Koryo Credit and BGF Retail
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and BGF is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Koryo Credit i.e., Koryo Credit and BGF Retail go up and down completely randomly.
Pair Corralation between Koryo Credit and BGF Retail
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the BGF Retail. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 1.44 times less risky than BGF Retail. The stock trades about -0.18 of its potential returns per unit of risk. The BGF Retail Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 10,460,000 in BGF Retail Co on November 6, 2024 and sell it today you would lose (100,000) from holding BGF Retail Co or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. BGF Retail Co
Performance |
| Timeline |
| Koryo Credit Information |
| BGF Retail |
Koryo Credit and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and BGF Retail
The main advantage of trading using opposite Koryo Credit and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| Koryo Credit vs. Dongil Steel Co | Koryo Credit vs. Industrial Bank | Koryo Credit vs. PJ Metal Co | Koryo Credit vs. Eagon Industrial Co |
| BGF Retail vs. Wonil Special Steel | BGF Retail vs. BooKook Steel Co | BGF Retail vs. Homecast CoLtd | BGF Retail vs. Samlip General Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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