Correlation Between Fine Besteel and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Pureun Mutual 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 Fine Besteel and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Pureun Mutual Savings, you can compare the effects of market volatilities on Fine Besteel and Pureun Mutual 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 Fine Besteel with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Pureun Mutual.
Diversification Opportunities for Fine Besteel and Pureun Mutual
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and Pureun is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Fine Besteel i.e., Fine Besteel and Pureun Mutual go up and down completely randomly.
Pair Corralation between Fine Besteel and Pureun Mutual
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.6 times more return on investment than Pureun Mutual. However, Fine Besteel is 1.6 times more volatile than Pureun Mutual Savings. It trades about 0.08 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about 0.01 per unit of risk. If you would invest 89,500 in Fine Besteel Co on November 6, 2024 and sell it today you would earn a total of 12,900 from holding Fine Besteel Co or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Fine Besteel |
| Pureun Mutual Savings |
Fine Besteel and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Pureun Mutual
The main advantage of trading using opposite Fine Besteel and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Fine Besteel vs. Samlip General Foods | Fine Besteel vs. Dongbang Transport Logistics | Fine Besteel vs. Daesung Hi Tech Co | Fine Besteel vs. Hanjoo Light Metal |
| Pureun Mutual vs. Alton Sports CoLtd | Pureun Mutual vs. Tuksu Engineering ConstructionLtd | Pureun Mutual vs. Digital Power Communications | Pureun Mutual vs. LG Display 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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