Correlation Between Grand Korea and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Infinitt Healthcare 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 Grand Korea and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Infinitt Healthcare Co, you can compare the effects of market volatilities on Grand Korea and Infinitt Healthcare 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 Grand Korea with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Infinitt Healthcare.
Diversification Opportunities for Grand Korea and Infinitt Healthcare
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Infinitt is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Grand Korea 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 Grand Korea Leisure are associated (or correlated) with Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Grand Korea i.e., Grand Korea and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Grand Korea and Infinitt Healthcare
Assuming the 90 days trading horizon Grand Korea Leisure is expected to generate 1.39 times more return on investment than Infinitt Healthcare. However, Grand Korea is 1.39 times more volatile than Infinitt Healthcare Co. It trades about 0.2 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about 0.14 per unit of risk. If you would invest 1,135,000 in Grand Korea Leisure on October 25, 2024 and sell it today you would earn a total of 54,000 from holding Grand Korea Leisure or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Grand Korea Leisure |
| Infinitt Healthcare |
Grand Korea and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Infinitt Healthcare
The main advantage of trading using opposite Grand Korea and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Grand Korea vs. Busan Industrial Co | Grand Korea vs. Busan Ind | Grand Korea vs. RPBio Inc | Grand Korea vs. Finebesteel |
| Infinitt Healthcare vs. KB Financial Group | Infinitt Healthcare vs. Shinhan Financial Group | Infinitt Healthcare vs. Hana Financial | Infinitt Healthcare vs. Woori Financial Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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