Correlation Between Foodnamoo and Playgram
Can any of the company-specific risk be diversified away by investing in both Foodnamoo and Playgram 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 Foodnamoo and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and Playgram Co, you can compare the effects of market volatilities on Foodnamoo and Playgram 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 Foodnamoo with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and Playgram.
Diversification Opportunities for Foodnamoo and Playgram
Very weak diversification
The 3 months correlation between Foodnamoo and Playgram is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Foodnamoo 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 Foodnamoo are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Foodnamoo i.e., Foodnamoo and Playgram go up and down completely randomly.
Pair Corralation between Foodnamoo and Playgram
Assuming the 90 days trading horizon Foodnamoo is expected to under-perform the Playgram. But the stock apears to be less risky and, when comparing its historical volatility, Foodnamoo is 1.77 times less risky than Playgram. The stock trades about -0.13 of its potential returns per unit of risk. The Playgram Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 36,500 in Playgram Co on September 4, 2024 and sell it today you would lose (1,200) from holding Playgram Co or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. Playgram Co
Performance |
| Timeline |
| Foodnamoo |
| Playgram |
Foodnamoo and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and Playgram
The main advantage of trading using opposite Foodnamoo and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Foodnamoo vs. Playgram Co | Foodnamoo vs. Digital Power Communications | Foodnamoo vs. Shinsegae Information Communication | Foodnamoo vs. Grand Korea Leisure |
| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Lotte Chemical Corp | Playgram vs. Hyundai Steel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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