Correlation Between THiRA-UTECH and Korea Electric
Can any of the company-specific risk be diversified away by investing in both THiRA-UTECH and Korea Electric 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 THiRA-UTECH and Korea Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THiRA UTECH LTD and Korea Electric Power, you can compare the effects of market volatilities on THiRA-UTECH and Korea Electric 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 THiRA-UTECH with a short position of Korea Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of THiRA-UTECH and Korea Electric.
Diversification Opportunities for THiRA-UTECH and Korea Electric
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between THiRA-UTECH and Korea is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding THiRA UTECH LTD and Korea Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Electric Power and THiRA-UTECH 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 THiRA UTECH LTD are associated (or correlated) with Korea Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Electric Power has no effect on the direction of THiRA-UTECH i.e., THiRA-UTECH and Korea Electric go up and down completely randomly.
Pair Corralation between THiRA-UTECH and Korea Electric
Assuming the 90 days trading horizon THiRA UTECH LTD is expected to generate 2.57 times more return on investment than Korea Electric. However, THiRA-UTECH is 2.57 times more volatile than Korea Electric Power. It trades about 0.05 of its potential returns per unit of risk. Korea Electric Power is currently generating about 0.01 per unit of risk. If you would invest 231,333 in THiRA UTECH LTD on September 15, 2024 and sell it today you would earn a total of 252,167 from holding THiRA UTECH LTD or generate 109.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THiRA UTECH LTD vs. Korea Electric Power
Performance |
| Timeline |
| THiRA UTECH LTD |
| Korea Electric Power |
THiRA-UTECH and Korea Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THiRA-UTECH and Korea Electric
The main advantage of trading using opposite THiRA-UTECH and Korea Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THiRA-UTECH position performs unexpectedly, Korea Electric 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 Electric will offset losses from the drop in Korea Electric's long position.| THiRA-UTECH vs. Kakao Games Corp | THiRA-UTECH vs. Devsisters corporation | THiRA-UTECH vs. Konan Technology | THiRA-UTECH vs. Nice Information Telecommunication |
| Korea Electric vs. Ssangyong Information Communication | Korea Electric vs. Nable Communications | Korea Electric vs. V One Tech Co | Korea Electric vs. THiRA UTECH LTD |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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