Correlation Between Foodnamoo and Polaris Office
Can any of the company-specific risk be diversified away by investing in both Foodnamoo and Polaris Office 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 Polaris Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and Polaris Office Corp, you can compare the effects of market volatilities on Foodnamoo and Polaris Office 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 Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and Polaris Office.
Diversification Opportunities for Foodnamoo and Polaris Office
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Foodnamoo and Polaris is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp 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 Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of Foodnamoo i.e., Foodnamoo and Polaris Office go up and down completely randomly.
Pair Corralation between Foodnamoo and Polaris Office
Assuming the 90 days trading horizon Foodnamoo is expected to under-perform the Polaris Office. But the stock apears to be less risky and, when comparing its historical volatility, Foodnamoo is 1.88 times less risky than Polaris Office. The stock trades about -0.07 of its potential returns per unit of risk. The Polaris Office Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 507,000 in Polaris Office Corp on September 2, 2024 and sell it today you would earn a total of 146,000 from holding Polaris Office Corp or generate 28.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. Polaris Office Corp
Performance |
| Timeline |
| Foodnamoo |
| Polaris Office Corp |
Foodnamoo and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and Polaris Office
The main advantage of trading using opposite Foodnamoo and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office's long position.| Foodnamoo vs. Busan Industrial Co | Foodnamoo vs. Busan Ind | Foodnamoo vs. Mirae Asset Daewoo | Foodnamoo vs. Finebesteel |
| Polaris Office vs. LG Household Healthcare | Polaris Office vs. SCI Information Service | Polaris Office vs. Korea Alcohol Industrial | Polaris Office vs. Dongbang Transport Logistics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |