Correlation Between Insun Environment and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Insun Environment and Puloon Technology 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 Insun Environment and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insun Environment New and Puloon Technology, you can compare the effects of market volatilities on Insun Environment and Puloon Technology 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 Insun Environment with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insun Environment and Puloon Technology.
Diversification Opportunities for Insun Environment and Puloon Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Insun and Puloon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Insun Environment New and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Insun Environment 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 Insun Environment New are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Insun Environment i.e., Insun Environment and Puloon Technology go up and down completely randomly.
Pair Corralation between Insun Environment and Puloon Technology
Assuming the 90 days trading horizon Insun Environment New is expected to under-perform the Puloon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Insun Environment New is 2.17 times less risky than Puloon Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Puloon Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 773,784 in Puloon Technology on October 13, 2024 and sell it today you would lose (27,784) from holding Puloon Technology or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.83% |
| Values | Daily Returns |
Insun Environment New vs. Puloon Technology
Performance |
| Timeline |
| Insun Environment New |
| Puloon Technology |
Insun Environment and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insun Environment and Puloon Technology
The main advantage of trading using opposite Insun Environment and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insun Environment position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Insun Environment vs. Jin Air Co | Insun Environment vs. Hanwha Life Insurance | Insun Environment vs. Haitai Confectionery Foods | Insun Environment vs. Hanjin Transportation Co |
| Puloon Technology vs. JYP Entertainment Corp | Puloon Technology vs. Digital Multimedia Technology | Puloon Technology vs. Alton Sports CoLtd | Puloon Technology vs. KT Submarine Telecom |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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