Correlation Between IQuest and Korea Information
Can any of the company-specific risk be diversified away by investing in both IQuest and Korea Information 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 IQuest and Korea Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQuest Co and Korea Information Engineering, you can compare the effects of market volatilities on IQuest and Korea Information 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 IQuest with a short position of Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQuest and Korea Information.
Diversification Opportunities for IQuest and Korea Information
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IQuest and Korea is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding IQuest Co and Korea Information Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information and IQuest 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 IQuest Co are associated (or correlated) with Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of IQuest i.e., IQuest and Korea Information go up and down completely randomly.
Pair Corralation between IQuest and Korea Information
Assuming the 90 days trading horizon IQuest Co is expected to generate 2.2 times more return on investment than Korea Information. However, IQuest is 2.2 times more volatile than Korea Information Engineering. It trades about 0.17 of its potential returns per unit of risk. Korea Information Engineering is currently generating about -0.34 per unit of risk. If you would invest 222,000 in IQuest Co on August 26, 2024 and sell it today you would earn a total of 27,500 from holding IQuest Co or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IQuest Co vs. Korea Information Engineering
Performance |
| Timeline |
| IQuest |
| Korea Information |
IQuest and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQuest and Korea Information
The main advantage of trading using opposite IQuest and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQuest position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| IQuest vs. Samsung Electronics Co | IQuest vs. Samsung Electronics Co | IQuest vs. LG Energy Solution | IQuest vs. SK Hynix |
| Korea Information vs. Korea Real Estate | Korea Information vs. Korea Ratings Co | Korea Information vs. IQuest Co | Korea Information vs. Wonbang Tech 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |