Correlation Between MetaLabs and Grand Korea
Can any of the company-specific risk be diversified away by investing in both MetaLabs and Grand Korea 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 Grand Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetaLabs Co and Grand Korea Leisure, you can compare the effects of market volatilities on MetaLabs and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetaLabs and Grand Korea.
Diversification Opportunities for MetaLabs and Grand Korea
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetaLabs and Grand is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MetaLabs Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of MetaLabs i.e., MetaLabs and Grand Korea go up and down completely randomly.
Pair Corralation between MetaLabs and Grand Korea
Assuming the 90 days trading horizon MetaLabs is expected to generate 1.93 times less return on investment than Grand Korea. In addition to that, MetaLabs is 1.23 times more volatile than Grand Korea Leisure. It trades about 0.1 of its total potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.23 per unit of volatility. If you would invest 1,135,000 in Grand Korea Leisure on October 24, 2024 and sell it today you would earn a total of 60,000 from holding Grand Korea Leisure or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetaLabs Co vs. Grand Korea Leisure
Performance |
| Timeline |
| MetaLabs |
| Grand Korea Leisure |
MetaLabs and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetaLabs and Grand Korea
The main advantage of trading using opposite MetaLabs and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetaLabs position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| MetaLabs vs. DB Financial Investment | MetaLabs vs. DB Insurance Co | MetaLabs vs. Duksan Hi Metal | MetaLabs vs. Jeju Bank |
| Grand Korea vs. Wireless Power Amplifier | Grand Korea vs. Hansol Homedeco Co | Grand Korea vs. MetaLabs Co | Grand Korea vs. Samlip General Foods |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |