Correlation Between Ubiquoss Holdings and Korea New
Can any of the company-specific risk be diversified away by investing in both Ubiquoss Holdings and Korea New 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 Ubiquoss Holdings and Korea New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquoss Holdings and Korea New Network, you can compare the effects of market volatilities on Ubiquoss Holdings and Korea New 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 Ubiquoss Holdings with a short position of Korea New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquoss Holdings and Korea New.
Diversification Opportunities for Ubiquoss Holdings and Korea New
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ubiquoss and Korea is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquoss Holdings and Korea New Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea New Network and Ubiquoss Holdings 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 Ubiquoss Holdings are associated (or correlated) with Korea New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea New Network has no effect on the direction of Ubiquoss Holdings i.e., Ubiquoss Holdings and Korea New go up and down completely randomly.
Pair Corralation between Ubiquoss Holdings and Korea New
Assuming the 90 days trading horizon Ubiquoss Holdings is expected to generate 2.11 times less return on investment than Korea New. But when comparing it to its historical volatility, Ubiquoss Holdings is 1.83 times less risky than Korea New. It trades about 0.04 of its potential returns per unit of risk. Korea New Network is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 74,687 in Korea New Network on November 2, 2024 and sell it today you would earn a total of 6,313 from holding Korea New Network or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubiquoss Holdings vs. Korea New Network
Performance |
| Timeline |
| Ubiquoss Holdings |
| Korea New Network |
Ubiquoss Holdings and Korea New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquoss Holdings and Korea New
The main advantage of trading using opposite Ubiquoss Holdings and Korea New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquoss Holdings position performs unexpectedly, Korea New 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 Korea New will offset losses from the drop in Korea New's long position.| Ubiquoss Holdings vs. Samsung Electronics Co | Ubiquoss Holdings vs. Samsung Electronics Co | Ubiquoss Holdings vs. SK Hynix | Ubiquoss Holdings vs. HMM Co |
| Korea New vs. JYP Entertainment Corp | Korea New vs. Industrial Bank | Korea New vs. SM Entertainment Co | Korea New vs. Next Entertainment World |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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