Correlation Between Korea Investment and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Korea Investment and Intellian Technologies 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 Investment and Intellian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Investment Holdings and Intellian Technologies, you can compare the effects of market volatilities on Korea Investment and Intellian Technologies 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 Investment with a short position of Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and Intellian Technologies.
Diversification Opportunities for Korea Investment and Intellian Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Intellian is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies and Korea Investment 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 Investment Holdings are associated (or correlated) with Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Korea Investment i.e., Korea Investment and Intellian Technologies go up and down completely randomly.
Pair Corralation between Korea Investment and Intellian Technologies
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.46 times more return on investment than Intellian Technologies. However, Korea Investment Holdings is 2.16 times less risky than Intellian Technologies. It trades about 0.04 of its potential returns per unit of risk. Intellian Technologies is currently generating about -0.02 per unit of risk. If you would invest 4,311,155 in Korea Investment Holdings on August 31, 2024 and sell it today you would earn a total of 1,088,845 from holding Korea Investment Holdings or generate 25.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Investment Holdings vs. Intellian Technologies
Performance |
| Timeline |
| Korea Investment Holdings |
| Intellian Technologies |
Korea Investment and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Investment and Intellian Technologies
The main advantage of trading using opposite Korea Investment and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Daewoo SBI SPAC | Korea Investment vs. Dream Security co | Korea Investment vs. Microfriend |
| Intellian Technologies vs. Dongsin Engineering Construction | Intellian Technologies vs. Doosan Fuel Cell | Intellian Technologies vs. Daishin Balance 1 | Intellian Technologies vs. Total Soft Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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