Correlation Between Jeju Air and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Jeju Air and Koryo Credit 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 Jeju Air and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Air Co and Koryo Credit Information, you can compare the effects of market volatilities on Jeju Air and Koryo Credit 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 Jeju Air with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Air and Koryo Credit.
Diversification Opportunities for Jeju Air and Koryo Credit
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeju and Koryo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Air Co and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and Jeju Air 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 Jeju Air Co are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Jeju Air i.e., Jeju Air and Koryo Credit go up and down completely randomly.
Pair Corralation between Jeju Air and Koryo Credit
Assuming the 90 days trading horizon Jeju Air Co is expected to generate 1.38 times more return on investment than Koryo Credit. However, Jeju Air is 1.38 times more volatile than Koryo Credit Information. It trades about -0.13 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.32 per unit of risk. If you would invest 756,000 in Jeju Air Co on November 7, 2024 and sell it today you would lose (18,000) from holding Jeju Air Co or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Air Co vs. Koryo Credit Information
Performance |
| Timeline |
| Jeju Air |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Koryo Credit Information |
Jeju Air and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Air and Koryo Credit
The main advantage of trading using opposite Jeju Air and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Air position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Jeju Air vs. SKONEC Entertainment Co | Jeju Air vs. Daehan Synthetic Fiber | Jeju Air vs. ISU Chemical Co | Jeju Air vs. Posco Chemical Co |
| Koryo Credit vs. SAMG Entertainment Co | Koryo Credit vs. Posco Chemical Co | Koryo Credit vs. Playgram Co | Koryo Credit vs. Genie Music |
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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