Correlation Between I-Scream Edu and Lotte Non-Life
Can any of the company-specific risk be diversified away by investing in both I-Scream Edu and Lotte Non-Life 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 I-Scream Edu and Lotte Non-Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Scream Edu CoLtd and Lotte Non Life Insurance, you can compare the effects of market volatilities on I-Scream Edu and Lotte Non-Life 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 I-Scream Edu with a short position of Lotte Non-Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of I-Scream Edu and Lotte Non-Life.
Diversification Opportunities for I-Scream Edu and Lotte Non-Life
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between I-Scream and Lotte is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding I Scream Edu CoLtd and Lotte Non Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Non Life and I-Scream Edu 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 I Scream Edu CoLtd are associated (or correlated) with Lotte Non-Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Non Life has no effect on the direction of I-Scream Edu i.e., I-Scream Edu and Lotte Non-Life go up and down completely randomly.
Pair Corralation between I-Scream Edu and Lotte Non-Life
Assuming the 90 days trading horizon I Scream Edu CoLtd is expected to generate 1.13 times more return on investment than Lotte Non-Life. However, I-Scream Edu is 1.13 times more volatile than Lotte Non Life Insurance. It trades about 0.13 of its potential returns per unit of risk. Lotte Non Life Insurance is currently generating about 0.05 per unit of risk. If you would invest 238,500 in I Scream Edu CoLtd on September 14, 2024 and sell it today you would earn a total of 24,500 from holding I Scream Edu CoLtd or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
I Scream Edu CoLtd vs. Lotte Non Life Insurance
Performance |
| Timeline |
| I Scream Edu |
| Lotte Non Life |
I-Scream Edu and Lotte Non-Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I-Scream Edu and Lotte Non-Life
The main advantage of trading using opposite I-Scream Edu and Lotte Non-Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I-Scream Edu position performs unexpectedly, Lotte Non-Life 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 Lotte Non-Life will offset losses from the drop in Lotte Non-Life's long position.| I-Scream Edu vs. BooKook Steel Co | I-Scream Edu vs. Fine Besteel Co | I-Scream Edu vs. Ssangyong Information Communication | I-Scream Edu vs. Daedong Steel Co |
| Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. SK Hynix | Lotte Non-Life vs. POSCO Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |