Correlation Between TOPMATERIAL and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both TOPMATERIAL and Koryo Credit 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 TOPMATERIAL and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOPMATERIAL LTD and Koryo Credit Information, you can compare the effects of market volatilities on TOPMATERIAL and Koryo Credit 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 TOPMATERIAL with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOPMATERIAL and Koryo Credit.
Diversification Opportunities for TOPMATERIAL and Koryo Credit
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOPMATERIAL and Koryo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding TOPMATERIAL LTD and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and TOPMATERIAL 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 TOPMATERIAL LTD are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of TOPMATERIAL i.e., TOPMATERIAL and Koryo Credit go up and down completely randomly.
Pair Corralation between TOPMATERIAL and Koryo Credit
Assuming the 90 days trading horizon TOPMATERIAL LTD is expected to generate 3.12 times more return on investment than Koryo Credit. However, TOPMATERIAL is 3.12 times more volatile than Koryo Credit Information. It trades about 0.01 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.02 per unit of risk. If you would invest 3,740,000 in TOPMATERIAL LTD on September 1, 2024 and sell it today you would lose (850,000) from holding TOPMATERIAL LTD or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOPMATERIAL LTD vs. Koryo Credit Information
Performance |
| Timeline |
| TOPMATERIAL LTD |
| Koryo Credit Information |
TOPMATERIAL and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOPMATERIAL and Koryo Credit
The main advantage of trading using opposite TOPMATERIAL and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOPMATERIAL position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL vs. SK Hynix |
| Koryo Credit vs. Hanwha InvestmentSecurities Co | Koryo Credit vs. Hyundai Home Shopping | Koryo Credit vs. SBI Investment KOREA | Koryo Credit vs. Cuckoo Homesys Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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