Correlation Between Showbox Corp and Korea New
Can any of the company-specific risk be diversified away by investing in both Showbox Corp 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 Showbox Corp and Korea New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Showbox Corp and Korea New Network, you can compare the effects of market volatilities on Showbox Corp 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 Showbox Corp with a short position of Korea New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Showbox Corp and Korea New.
Diversification Opportunities for Showbox Corp and Korea New
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Showbox and Korea is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Showbox Corp 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 Showbox Corp 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 Showbox Corp 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 Showbox Corp i.e., Showbox Corp and Korea New go up and down completely randomly.
Pair Corralation between Showbox Corp and Korea New
Assuming the 90 days trading horizon Showbox Corp is expected to generate 1.17 times more return on investment than Korea New. However, Showbox Corp is 1.17 times more volatile than Korea New Network. It trades about 0.01 of its potential returns per unit of risk. Korea New Network is currently generating about 0.01 per unit of risk. If you would invest 389,500 in Showbox Corp on September 12, 2024 and sell it today you would lose (9,500) from holding Showbox Corp or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Showbox Corp vs. Korea New Network
Performance |
| Timeline |
| Showbox Corp |
| Korea New Network |
Showbox Corp and Korea New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Showbox Corp and Korea New
The main advantage of trading using opposite Showbox Corp and Korea New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Showbox Corp 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.| Showbox Corp vs. Incar Financial Service | Showbox Corp vs. Pureun Mutual Savings | Showbox Corp vs. Kaonmedia Co | Showbox Corp vs. Hanjin Transportation Co |
| Korea New vs. BGF Retail Co | Korea New vs. LG Display Co | Korea New vs. Grand Korea Leisure | Korea New vs. Lake Materials 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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