Correlation Between Puloon Technology and Global Standard
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Global Standard 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 Global Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Global Standard Technology, you can compare the effects of market volatilities on Puloon Technology and Global Standard 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 Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Global Standard.
Diversification Opportunities for Puloon Technology and Global Standard
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Puloon and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech 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 Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Puloon Technology i.e., Puloon Technology and Global Standard go up and down completely randomly.
Pair Corralation between Puloon Technology and Global Standard
Assuming the 90 days trading horizon Puloon Technology is expected to generate 1.34 times less return on investment than Global Standard. But when comparing it to its historical volatility, Puloon Technology is 1.08 times less risky than Global Standard. It trades about 0.08 of its potential returns per unit of risk. Global Standard Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,308,900 in Global Standard Technology on November 3, 2024 and sell it today you would earn a total of 487,100 from holding Global Standard Technology or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Global Standard Technology
Performance |
| Timeline |
| Puloon Technology |
| Global Standard Tech |
Puloon Technology and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Global Standard
The main advantage of trading using opposite Puloon Technology and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| Puloon Technology vs. YG Entertainment | Puloon Technology vs. TJ media Co | Puloon Technology vs. Digital Power Communications | Puloon Technology vs. MediaZen |
| Global Standard vs. Samsung Electronics Co | Global Standard vs. Samsung Electronics Co | Global Standard vs. Hyundai Motor Co | Global Standard vs. Hyundai Motor |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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