Correlation Between Grand Korea and Suprema
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Suprema 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 Suprema 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 Suprema, you can compare the effects of market volatilities on Grand Korea and Suprema 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 Suprema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Suprema.
Diversification Opportunities for Grand Korea and Suprema
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grand and Suprema is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Suprema in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suprema 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 Suprema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suprema has no effect on the direction of Grand Korea i.e., Grand Korea and Suprema go up and down completely randomly.
Pair Corralation between Grand Korea and Suprema
Assuming the 90 days trading horizon Grand Korea Leisure is expected to generate 1.07 times more return on investment than Suprema. However, Grand Korea is 1.07 times more volatile than Suprema. It trades about 0.23 of its potential returns per unit of risk. Suprema is currently generating about 0.15 per unit of risk. If you would invest 1,135,000 in Grand Korea Leisure on October 24, 2024 and sell it today you would earn a total of 60,000 from holding Grand Korea Leisure or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Suprema
Performance |
| Timeline |
| Grand Korea Leisure |
| Suprema |
Grand Korea and Suprema Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Suprema
The main advantage of trading using opposite Grand Korea and Suprema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Suprema 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 Suprema will offset losses from the drop in Suprema's long position.| Grand Korea vs. Wireless Power Amplifier | Grand Korea vs. Hansol Homedeco Co | Grand Korea vs. MetaLabs Co | Grand Korea vs. Samlip General Foods |
| Suprema vs. Samick Musical Instruments | Suprema vs. KPX Green Chemical | Suprema vs. Grand Korea Leisure | Suprema vs. Sung Bo Chemicals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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