Correlation Between Puloon Technology and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Dongbu Insurance 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 Puloon Technology and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Dongbu Insurance Co, you can compare the effects of market volatilities on Puloon Technology and Dongbu Insurance 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 Puloon Technology with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Dongbu Insurance.
Diversification Opportunities for Puloon Technology and Dongbu Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puloon and Dongbu is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and Puloon Technology 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 Puloon Technology are associated (or correlated) with Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Puloon Technology i.e., Puloon Technology and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Puloon Technology and Dongbu Insurance
Assuming the 90 days trading horizon Puloon Technology is expected to generate 0.96 times more return on investment than Dongbu Insurance. However, Puloon Technology is 1.04 times less risky than Dongbu Insurance. It trades about -0.02 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about -0.22 per unit of risk. If you would invest 718,000 in Puloon Technology on December 3, 2024 and sell it today you would lose (7,000) from holding Puloon Technology or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Dongbu Insurance Co
Performance |
| Timeline |
| Puloon Technology |
| Dongbu Insurance |
Puloon Technology and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Dongbu Insurance
The main advantage of trading using opposite Puloon Technology and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Puloon Technology vs. Sempio Foods Co | Puloon Technology vs. Hanjoo Light Metal | Puloon Technology vs. INFINITT Healthcare Co | Puloon Technology vs. Infinitt Healthcare Co |
| Dongbu Insurance vs. Lotte Chilsung Beverage | Dongbu Insurance vs. Bohae Brewery | Dongbu Insurance vs. KG Eco Technology | Dongbu Insurance vs. EBEST Investment Securities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |