Correlation Between Korea Computer and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Korea Computer and Koryo Credit 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 Korea Computer and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Computer and Koryo Credit Information, you can compare the effects of market volatilities on Korea Computer and Koryo Credit 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 Korea Computer with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Computer and Koryo Credit.
Diversification Opportunities for Korea Computer and Koryo Credit
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korea and Koryo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Korea Computer and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and Korea Computer 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 Korea Computer are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Korea Computer i.e., Korea Computer and Koryo Credit go up and down completely randomly.
Pair Corralation between Korea Computer and Koryo Credit
Assuming the 90 days trading horizon Korea Computer is expected to generate 10.87 times less return on investment than Koryo Credit. In addition to that, Korea Computer is 2.86 times more volatile than Koryo Credit Information. It trades about 0.0 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about 0.02 per unit of volatility. If you would invest 961,154 in Koryo Credit Information on November 7, 2024 and sell it today you would earn a total of 10,846 from holding Koryo Credit Information or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Computer vs. Koryo Credit Information
Performance |
| Timeline |
| Korea Computer |
| Koryo Credit Information |
Korea Computer and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Computer and Koryo Credit
The main advantage of trading using opposite Korea Computer and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Computer position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Korea Computer vs. Shinhan Inverse Silver | Korea Computer vs. Tae Kyung Chemical | Korea Computer vs. Lotte Fine Chemical | Korea Computer vs. CU Medical Systems |
| Koryo Credit vs. Dongil Steel Co | Koryo Credit vs. Industrial Bank | Koryo Credit vs. PJ Metal Co | Koryo Credit vs. Eagon Industrial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |