Correlation Between Puloon Technology and Korea Petro
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Korea Petro 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 Korea Petro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Korea Petro Chemical, you can compare the effects of market volatilities on Puloon Technology and Korea Petro 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 Korea Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Korea Petro.
Diversification Opportunities for Puloon Technology and Korea Petro
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Puloon and Korea is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Korea Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Petro Chemical 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 Korea Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Petro Chemical has no effect on the direction of Puloon Technology i.e., Puloon Technology and Korea Petro go up and down completely randomly.
Pair Corralation between Puloon Technology and Korea Petro
Assuming the 90 days trading horizon Puloon Technology is expected to generate 0.73 times more return on investment than Korea Petro. However, Puloon Technology is 1.37 times less risky than Korea Petro. It trades about -0.05 of its potential returns per unit of risk. Korea Petro Chemical is currently generating about -0.06 per unit of risk. If you would invest 790,096 in Puloon Technology on August 25, 2024 and sell it today you would lose (207,096) from holding Puloon Technology or give up 26.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Korea Petro Chemical
Performance |
| Timeline |
| Puloon Technology |
| Korea Petro Chemical |
Puloon Technology and Korea Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Korea Petro
The main advantage of trading using opposite Puloon Technology and Korea Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Korea Petro 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 Petro will offset losses from the drop in Korea Petro's long position.| Puloon Technology vs. Korea Petro Chemical | Puloon Technology vs. Hansol Chemical Co | Puloon Technology vs. Daehan Synthetic Fiber | Puloon Technology vs. Cuckoo Electronics Co |
| Korea Petro vs. MediaZen | Korea Petro vs. Asiana Airlines | Korea Petro vs. Daiyang Metal Co | Korea Petro vs. Samhwa Paint Industrial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |