Correlation Between Puloon Technology and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Iljin Display 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 Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Iljin Display, you can compare the effects of market volatilities on Puloon Technology and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Iljin Display.
Diversification Opportunities for Puloon Technology and Iljin Display
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Puloon and Iljin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Puloon Technology i.e., Puloon Technology and Iljin Display go up and down completely randomly.
Pair Corralation between Puloon Technology and Iljin Display
Assuming the 90 days trading horizon Puloon Technology is expected to generate 7.43 times less return on investment than Iljin Display. But when comparing it to its historical volatility, Puloon Technology is 1.41 times less risky than Iljin Display. It trades about 0.01 of its potential returns per unit of risk. Iljin Display is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 87,500 in Iljin Display on October 14, 2024 and sell it today you would earn a total of 2,700 from holding Iljin Display or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Iljin Display
Performance |
| Timeline |
| Puloon Technology |
| Iljin Display |
Puloon Technology and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Iljin Display
The main advantage of trading using opposite Puloon Technology and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Puloon Technology vs. INFINITT Healthcare Co | Puloon Technology vs. HB Technology TD | Puloon Technology vs. Hwangkum Steel Technology | Puloon Technology vs. GS Retail Co |
| Iljin Display vs. Puloon Technology | Iljin Display vs. Eagle Veterinary Technology | Iljin Display vs. Youngsin Metal Industrial | Iljin Display vs. Digital Imaging Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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