Correlation Between Puloon Technology and Koh Young
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Koh Young 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 Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Koh Young Technology, you can compare the effects of market volatilities on Puloon Technology and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Koh Young.
Diversification Opportunities for Puloon Technology and Koh Young
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Puloon and Koh is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Puloon Technology i.e., Puloon Technology and Koh Young go up and down completely randomly.
Pair Corralation between Puloon Technology and Koh Young
Assuming the 90 days trading horizon Puloon Technology is expected to generate 2.53 times more return on investment than Koh Young. However, Puloon Technology is 2.53 times more volatile than Koh Young Technology. It trades about 0.15 of its potential returns per unit of risk. Koh Young Technology is currently generating about 0.03 per unit of risk. If you would invest 601,000 in Puloon Technology on September 20, 2024 and sell it today you would earn a total of 107,000 from holding Puloon Technology or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Koh Young Technology
Performance |
| Timeline |
| Puloon Technology |
| Koh Young Technology |
Puloon Technology and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Koh Young
The main advantage of trading using opposite Puloon Technology and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Puloon Technology vs. Yura Tech Co | Puloon Technology vs. Hannong Chemicals | Puloon Technology vs. SK Chemicals Co | Puloon Technology vs. Cots Technology Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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