Correlation Between MetaLabs and Korea Gas
Can any of the company-specific risk be diversified away by investing in both MetaLabs and Korea Gas 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 MetaLabs and Korea Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetaLabs Co and Korea Gas, you can compare the effects of market volatilities on MetaLabs and Korea Gas 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 MetaLabs with a short position of Korea Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetaLabs and Korea Gas.
Diversification Opportunities for MetaLabs and Korea Gas
Very weak diversification
The 3 months correlation between MetaLabs and Korea is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MetaLabs Co and Korea Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Gas and MetaLabs 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 MetaLabs Co are associated (or correlated) with Korea Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Gas has no effect on the direction of MetaLabs i.e., MetaLabs and Korea Gas go up and down completely randomly.
Pair Corralation between MetaLabs and Korea Gas
Assuming the 90 days trading horizon MetaLabs Co is expected to under-perform the Korea Gas. But the stock apears to be less risky and, when comparing its historical volatility, MetaLabs Co is 1.19 times less risky than Korea Gas. The stock trades about -0.05 of its potential returns per unit of risk. The Korea Gas is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,390,000 in Korea Gas on September 12, 2024 and sell it today you would earn a total of 980,000 from holding Korea Gas or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetaLabs Co vs. Korea Gas
Performance |
| Timeline |
| MetaLabs |
| Korea Gas |
MetaLabs and Korea Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetaLabs and Korea Gas
The main advantage of trading using opposite MetaLabs and Korea Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetaLabs position performs unexpectedly, Korea Gas 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 Gas will offset losses from the drop in Korea Gas' long position.| MetaLabs vs. Daou Data Corp | MetaLabs vs. Solution Advanced Technology | MetaLabs vs. Busan Industrial Co | MetaLabs vs. Busan Ind |
| Korea Gas vs. Pungguk Ethanol Industrial | Korea Gas vs. Cheryong Industrial CoLtd | Korea Gas vs. KakaoBank Corp | Korea Gas vs. MetaLabs 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |