Correlation Between Koryo Credit and FLITTO
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and FLITTO 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 FLITTO 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 FLITTO Inc, you can compare the effects of market volatilities on Koryo Credit and FLITTO 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 FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and FLITTO.
Diversification Opportunities for Koryo Credit and FLITTO
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koryo and FLITTO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc 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 FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of Koryo Credit i.e., Koryo Credit and FLITTO go up and down completely randomly.
Pair Corralation between Koryo Credit and FLITTO
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.26 times more return on investment than FLITTO. However, Koryo Credit Information is 3.91 times less risky than FLITTO. It trades about 0.02 of its potential returns per unit of risk. FLITTO Inc is currently generating about 0.0 per unit of risk. If you would invest 955,703 in Koryo Credit Information on September 1, 2024 and sell it today you would earn a total of 75,297 from holding Koryo Credit Information or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. FLITTO Inc
Performance |
| Timeline |
| Koryo Credit Information |
| FLITTO Inc |
Koryo Credit and FLITTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and FLITTO
The main advantage of trading using opposite Koryo Credit and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.| Koryo Credit vs. Hanwha InvestmentSecurities Co | Koryo Credit vs. Hyundai Home Shopping | Koryo Credit vs. SBI Investment KOREA | Koryo Credit vs. Cuckoo Homesys 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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