Correlation Between Puloon Technology and Formetal
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and Formetal 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 Formetal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and Formetal Co, you can compare the effects of market volatilities on Puloon Technology and Formetal 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 Formetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Formetal.
Diversification Opportunities for Puloon Technology and Formetal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Puloon and Formetal is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Formetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formetal 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 Formetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formetal has no effect on the direction of Puloon Technology i.e., Puloon Technology and Formetal go up and down completely randomly.
Pair Corralation between Puloon Technology and Formetal
Assuming the 90 days trading horizon Puloon Technology is expected to generate 3.07 times less return on investment than Formetal. But when comparing it to its historical volatility, Puloon Technology is 1.96 times less risky than Formetal. It trades about 0.14 of its potential returns per unit of risk. Formetal Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 338,000 in Formetal Co on November 1, 2024 and sell it today you would earn a total of 42,500 from holding Formetal Co or generate 12.57% 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. Formetal Co
Performance |
| Timeline |
| Puloon Technology |
| Formetal |
Puloon Technology and Formetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Formetal
The main advantage of trading using opposite Puloon Technology and Formetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, Formetal 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 Formetal will offset losses from the drop in Formetal's long position.| Puloon Technology vs. Eagon Industrial Co | Puloon Technology vs. LG Household Healthcare | Puloon Technology vs. Wireless Power Amplifier | Puloon Technology vs. Mobileleader CoLtd |
| Formetal vs. Puloon Technology | Formetal vs. Display Tech Co | Formetal vs. Alton Sports CoLtd | Formetal vs. PlayD 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |