Correlation Between INFINITT Healthcare and Grand Korea
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Grand Korea 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 INFINITT Healthcare and Grand Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFINITT Healthcare Co and Grand Korea Leisure, you can compare the effects of market volatilities on INFINITT Healthcare and Grand Korea 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 INFINITT Healthcare with a short position of Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Grand Korea.
Diversification Opportunities for INFINITT Healthcare and Grand Korea
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between INFINITT and Grand is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure and INFINITT Healthcare 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 INFINITT Healthcare Co are associated (or correlated) with Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Grand Korea go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Grand Korea
Assuming the 90 days trading horizon INFINITT Healthcare is expected to generate 1.07 times less return on investment than Grand Korea. In addition to that, INFINITT Healthcare is 1.02 times more volatile than Grand Korea Leisure. It trades about 0.24 of its total potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.26 per unit of volatility. If you would invest 1,133,000 in Grand Korea Leisure on November 1, 2024 and sell it today you would earn a total of 53,000 from holding Grand Korea Leisure or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Grand Korea Leisure
Performance |
| Timeline |
| INFINITT Healthcare |
| Grand Korea Leisure |
INFINITT Healthcare and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Grand Korea
The main advantage of trading using opposite INFINITT Healthcare and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| INFINITT Healthcare vs. Tamul Multimedia Co | INFINITT Healthcare vs. SAMG Entertainment Co | INFINITT Healthcare vs. Yura Tech Co | INFINITT Healthcare vs. SKONEC Entertainment Co |
| Grand Korea vs. Daol Investment Securities | Grand Korea vs. Jeju Air Co | Grand Korea vs. INFINITT Healthcare Co | Grand Korea vs. Golden Bridge Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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