Correlation Between Koryo Credit and GiantStep

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Can any of the company-specific risk be diversified away by investing in both Koryo Credit and GiantStep 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 GiantStep 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 GiantStep Co, you can compare the effects of market volatilities on Koryo Credit and GiantStep 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 GiantStep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and GiantStep.

Diversification Opportunities for Koryo Credit and GiantStep

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Koryo and GiantStep is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and GiantStep Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiantStep 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 GiantStep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiantStep has no effect on the direction of Koryo Credit i.e., Koryo Credit and GiantStep go up and down completely randomly.

Pair Corralation between Koryo Credit and GiantStep

Assuming the 90 days trading horizon Koryo Credit is expected to generate 10.02 times less return on investment than GiantStep. But when comparing it to its historical volatility, Koryo Credit Information is 4.85 times less risky than GiantStep. It trades about 0.19 of its potential returns per unit of risk. GiantStep Co is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  502,000  in GiantStep Co on October 10, 2024 and sell it today you would earn a total of  190,000  from holding GiantStep Co or generate 37.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Koryo Credit Information  vs.  GiantStep Co

 Performance 
       Timeline  
Koryo Credit Information 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Koryo Credit Information are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Koryo Credit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
GiantStep 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GiantStep Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Koryo Credit and GiantStep Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Koryo Credit and GiantStep

The main advantage of trading using opposite Koryo Credit and GiantStep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, GiantStep 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 GiantStep will offset losses from the drop in GiantStep's long position.
The idea behind Koryo Credit Information and GiantStep Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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