Correlation Between Interflex and Korea Real
Can any of the company-specific risk be diversified away by investing in both Interflex and Korea Real 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 Interflex and Korea Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interflex Co and Korea Real Estate, you can compare the effects of market volatilities on Interflex and Korea Real 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 Interflex with a short position of Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interflex and Korea Real.
Diversification Opportunities for Interflex and Korea Real
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Interflex and Korea is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Interflex Co and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate and Interflex 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 Interflex Co are associated (or correlated) with Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Interflex i.e., Interflex and Korea Real go up and down completely randomly.
Pair Corralation between Interflex and Korea Real
Assuming the 90 days trading horizon Interflex Co is expected to under-perform the Korea Real. In addition to that, Interflex is 3.11 times more volatile than Korea Real Estate. It trades about -0.13 of its total potential returns per unit of risk. Korea Real Estate is currently generating about 0.01 per unit of volatility. If you would invest 101,600 in Korea Real Estate on August 25, 2024 and sell it today you would earn a total of 600.00 from holding Korea Real Estate or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interflex Co vs. Korea Real Estate
Performance |
| Timeline |
| Interflex |
| Korea Real Estate |
Interflex and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interflex and Korea Real
The main advantage of trading using opposite Interflex and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interflex position performs unexpectedly, Korea Real 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 Korea Real will offset losses from the drop in Korea Real's long position.| Interflex vs. Korea Real Estate | Interflex vs. Korea Ratings Co | Interflex vs. IQuest Co | Interflex vs. Wonbang Tech Co |
| Korea Real vs. Lion Chemtech Co | Korea Real vs. Ssangyong Information Communication | Korea Real vs. LG Household Healthcare | Korea Real vs. Vitzro Tech 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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