Correlation Between NewFlex Technology and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology 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 NewFlex Technology and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Puloon Technology, you can compare the effects of market volatilities on NewFlex Technology 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 NewFlex Technology with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Puloon Technology.
Diversification Opportunities for NewFlex Technology and Puloon Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NewFlex and Puloon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and NewFlex Technology 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 NewFlex Technology Co 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 NewFlex Technology i.e., NewFlex Technology and Puloon Technology go up and down completely randomly.
Pair Corralation between NewFlex Technology and Puloon Technology
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the Puloon Technology. In addition to that, NewFlex Technology is 1.02 times more volatile than Puloon Technology. It trades about -0.25 of its total potential returns per unit of risk. Puloon Technology is currently generating about -0.07 per unit of volatility. If you would invest 628,000 in Puloon Technology on August 28, 2024 and sell it today you would lose (26,000) from holding Puloon Technology or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Puloon Technology
Performance |
| Timeline |
| NewFlex Technology |
| Puloon Technology |
NewFlex Technology and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Puloon Technology
The main advantage of trading using opposite NewFlex Technology and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology 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.| NewFlex Technology vs. Hanwha InvestmentSecurities Co | NewFlex Technology vs. SBI Investment KOREA | NewFlex Technology vs. Samyung Trading Co | NewFlex Technology vs. Korea Air Svc |
| Puloon Technology vs. Korea Real Estate | Puloon Technology vs. Korea Ratings Co | Puloon Technology vs. IQuest Co | Puloon Technology vs. Wonbang Tech Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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