Correlation Between Cuckoo Homesys and POSCO Holdings
Can any of the company-specific risk be diversified away by investing in both Cuckoo Homesys and POSCO Holdings 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 Cuckoo Homesys and POSCO Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Homesys Co and POSCO Holdings, you can compare the effects of market volatilities on Cuckoo Homesys and POSCO Holdings 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 Cuckoo Homesys with a short position of POSCO Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Homesys and POSCO Holdings.
Diversification Opportunities for Cuckoo Homesys and POSCO Holdings
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cuckoo and POSCO is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Homesys Co and POSCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO Holdings and Cuckoo Homesys 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 Cuckoo Homesys Co are associated (or correlated) with POSCO Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO Holdings has no effect on the direction of Cuckoo Homesys i.e., Cuckoo Homesys and POSCO Holdings go up and down completely randomly.
Pair Corralation between Cuckoo Homesys and POSCO Holdings
Assuming the 90 days trading horizon Cuckoo Homesys Co is expected to under-perform the POSCO Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Cuckoo Homesys Co is 2.46 times less risky than POSCO Holdings. The stock trades about -0.35 of its potential returns per unit of risk. The POSCO Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 25,000,000 in POSCO Holdings on November 1, 2024 and sell it today you would earn a total of 1,150,000 from holding POSCO Holdings or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Homesys Co vs. POSCO Holdings
Performance |
| Timeline |
| Cuckoo Homesys |
| POSCO Holdings |
Cuckoo Homesys and POSCO Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Homesys and POSCO Holdings
The main advantage of trading using opposite Cuckoo Homesys and POSCO Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Homesys position performs unexpectedly, POSCO Holdings 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 POSCO Holdings will offset losses from the drop in POSCO Holdings' long position.| Cuckoo Homesys vs. Daiyang Metal Co | Cuckoo Homesys vs. Kukil Metal Co | Cuckoo Homesys vs. Youngsin Metal Industrial | Cuckoo Homesys vs. KTB Investment Securities |
| POSCO Holdings vs. Seoul Semiconductor Co | POSCO Holdings vs. Cuckoo Homesys Co | POSCO Holdings vs. Isu Chemical Co | POSCO Holdings vs. Kyung In Synthetic Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |