Correlation Between Grand Korea and Amogreentech
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on Grand Korea and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Amogreentech.
Diversification Opportunities for Grand Korea and Amogreentech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grand and Amogreentech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of Grand Korea i.e., Grand Korea and Amogreentech go up and down completely randomly.
Pair Corralation between Grand Korea and Amogreentech
Assuming the 90 days trading horizon Grand Korea Leisure is expected to generate 0.66 times more return on investment than Amogreentech. However, Grand Korea Leisure is 1.51 times less risky than Amogreentech. It trades about -0.03 of its potential returns per unit of risk. Amogreentech Co is currently generating about -0.04 per unit of risk. If you would invest 1,763,945 in Grand Korea Leisure on August 29, 2024 and sell it today you would lose (609,945) from holding Grand Korea Leisure or give up 34.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Amogreentech Co
Performance |
| Timeline |
| Grand Korea Leisure |
| Amogreentech |
Grand Korea and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Amogreentech
The main advantage of trading using opposite Grand Korea and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| Grand Korea vs. TK Chemical | Grand Korea vs. Atinum Investment Co | Grand Korea vs. SBI Investment KOREA | Grand Korea vs. Posco Chemical Co |
| Amogreentech vs. Ecopro BM Co | Amogreentech vs. Sangsin Energy Display | Amogreentech vs. Bosung Power Technology | Amogreentech vs. APro 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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