Correlation Between Puloon Technology and RFTech
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and RFTech 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 RFTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and RFTech Co, you can compare the effects of market volatilities on Puloon Technology and RFTech 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 RFTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and RFTech.
Diversification Opportunities for Puloon Technology and RFTech
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Puloon and RFTech is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and RFTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFTech 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 RFTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFTech has no effect on the direction of Puloon Technology i.e., Puloon Technology and RFTech go up and down completely randomly.
Pair Corralation between Puloon Technology and RFTech
Assuming the 90 days trading horizon Puloon Technology is expected to generate 1.24 times more return on investment than RFTech. However, Puloon Technology is 1.24 times more volatile than RFTech Co. It trades about 0.04 of its potential returns per unit of risk. RFTech Co is currently generating about 0.0 per unit of risk. If you would invest 724,000 in Puloon Technology on November 7, 2024 and sell it today you would earn a total of 8,000 from holding Puloon Technology or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Puloon Technology vs. RFTech Co
Performance |
| Timeline |
| Puloon Technology |
| RFTech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Puloon Technology and RFTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and RFTech
The main advantage of trading using opposite Puloon Technology and RFTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, RFTech 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 RFTech will offset losses from the drop in RFTech's long position.| Puloon Technology vs. Ssangyong Materials Corp | Puloon Technology vs. SK IE Technology | Puloon Technology vs. Asia Technology Co | Puloon Technology vs. Woori Technology |
| RFTech vs. UJU Electronics Co | RFTech vs. Samsung Publishing Co | RFTech vs. Woori Technology | RFTech vs. Seoul Electronics Telecom |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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