Correlation Between E Investment and Korea Steel
Can any of the company-specific risk be diversified away by investing in both E Investment and Korea Steel 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 E Investment and Korea Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Korea Steel Co, you can compare the effects of market volatilities on E Investment and Korea Steel 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 E Investment with a short position of Korea Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Korea Steel.
Diversification Opportunities for E Investment and Korea Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Korea Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Steel and E Investment 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 E Investment Development are associated (or correlated) with Korea Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Steel has no effect on the direction of E Investment i.e., E Investment and Korea Steel go up and down completely randomly.
Pair Corralation between E Investment and Korea Steel
If you would invest 160,000 in Korea Steel Co on October 24, 2024 and sell it today you would earn a total of 4,200 from holding Korea Steel Co or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. Korea Steel Co
Performance |
| Timeline |
| E Investment Development |
| Korea Steel |
E Investment and Korea Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Korea Steel
The main advantage of trading using opposite E Investment and Korea Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Korea Steel 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 Steel will offset losses from the drop in Korea Steel's long position.| E Investment vs. Samyang Foods Co | E Investment vs. Air Busan Co | E Investment vs. Korean Drug Co | E Investment vs. Tway Air Co |
| Korea Steel vs. E Investment Development | Korea Steel vs. Korea Investment Holdings | Korea Steel vs. Nh Investment And | Korea Steel vs. Leaders Technology Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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