Correlation Between Korea New and A-Tech Solution
Can any of the company-specific risk be diversified away by investing in both Korea New and A-Tech Solution 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 New and A-Tech Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and A Tech Solution Co, you can compare the effects of market volatilities on Korea New and A-Tech Solution 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 New with a short position of A-Tech Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and A-Tech Solution.
Diversification Opportunities for Korea New and A-Tech Solution
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and A-Tech is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and A Tech Solution Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Tech Solution and Korea New 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 New Network are associated (or correlated) with A-Tech Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Tech Solution has no effect on the direction of Korea New i.e., Korea New and A-Tech Solution go up and down completely randomly.
Pair Corralation between Korea New and A-Tech Solution
Assuming the 90 days trading horizon Korea New Network is expected to generate 0.76 times more return on investment than A-Tech Solution. However, Korea New Network is 1.32 times less risky than A-Tech Solution. It trades about -0.04 of its potential returns per unit of risk. A Tech Solution Co is currently generating about -0.11 per unit of risk. If you would invest 112,277 in Korea New Network on September 14, 2024 and sell it today you would lose (23,177) from holding Korea New Network or give up 20.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea New Network vs. A Tech Solution Co
Performance |
| Timeline |
| Korea New Network |
| A Tech Solution |
Korea New and A-Tech Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and A-Tech Solution
The main advantage of trading using opposite Korea New and A-Tech Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New position performs unexpectedly, A-Tech Solution 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 A-Tech Solution will offset losses from the drop in A-Tech Solution's long position.| Korea New vs. Settlebank | Korea New vs. Dgb Financial | Korea New vs. BIT Computer Co | Korea New vs. CG Hi Tech |
| A-Tech Solution vs. Korea New Network | A-Tech Solution vs. Solution Advanced Technology | A-Tech Solution vs. Busan Industrial Co | A-Tech Solution vs. Busan Ind |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |