Correlation Between 458730 and ACE 10Y
Can any of the company-specific risk be diversified away by investing in both 458730 and ACE 10Y 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 458730 and ACE 10Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 458730 and ACE 10Y KTB, you can compare the effects of market volatilities on 458730 and ACE 10Y 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 458730 with a short position of ACE 10Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of 458730 and ACE 10Y.
Diversification Opportunities for 458730 and ACE 10Y
Poor diversification
The 3 months correlation between 458730 and ACE is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding 458730 and ACE 10Y KTB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACE 10Y KTB and 458730 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 458730 are associated (or correlated) with ACE 10Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACE 10Y KTB has no effect on the direction of 458730 i.e., 458730 and ACE 10Y go up and down completely randomly.
Pair Corralation between 458730 and ACE 10Y
Assuming the 90 days trading horizon 458730 is expected to generate 2.2 times more return on investment than ACE 10Y. However, 458730 is 2.2 times more volatile than ACE 10Y KTB. It trades about 0.26 of its potential returns per unit of risk. ACE 10Y KTB is currently generating about 0.14 per unit of risk. If you would invest 1,252,814 in 458730 on October 21, 2024 and sell it today you would earn a total of 44,186 from holding 458730 or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
458730 vs. ACE 10Y KTB
Performance |
| Timeline |
| 458730 |
| ACE 10Y KTB |
458730 and ACE 10Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 458730 and ACE 10Y
The main advantage of trading using opposite 458730 and ACE 10Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 458730 position performs unexpectedly, ACE 10Y 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 ACE 10Y will offset losses from the drop in ACE 10Y's long position.| 458730 vs. Samsung Asset Management | 458730 vs. Samsung Kodex Korea | 458730 vs. Shinhan Dollar Index | 458730 vs. KIM KINDEX SP500 |
| ACE 10Y vs. Samsung Asset Management | ACE 10Y vs. Samsung Kodex Korea | ACE 10Y vs. Shinhan Dollar Index | ACE 10Y vs. KIM KINDEX SP500 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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