Correlation Between CNVISION MEDIA and POSCO Holdings
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and POSCO Holdings 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 CNVISION MEDIA and POSCO Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and POSCO Holdings, you can compare the effects of market volatilities on CNVISION MEDIA and POSCO Holdings 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 CNVISION MEDIA with a short position of POSCO Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and POSCO Holdings.
Diversification Opportunities for CNVISION MEDIA and POSCO Holdings
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNVISION and POSCO is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and POSCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO Holdings and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with POSCO Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO Holdings has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and POSCO Holdings go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and POSCO Holdings
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.19 times more return on investment than POSCO Holdings. However, CNVISION MEDIA is 1.19 times more volatile than POSCO Holdings. It trades about 0.01 of its potential returns per unit of risk. POSCO Holdings is currently generating about -0.06 per unit of risk. If you would invest 5.50 in CNVISION MEDIA on September 12, 2024 and sell it today you would lose (0.10) from holding CNVISION MEDIA or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
CNVISION MEDIA vs. POSCO Holdings
Performance |
| Timeline |
| CNVISION MEDIA |
| POSCO Holdings |
CNVISION MEDIA and POSCO Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and POSCO Holdings
The main advantage of trading using opposite CNVISION MEDIA and POSCO Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, POSCO Holdings 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 POSCO Holdings will offset losses from the drop in POSCO Holdings' long position.| CNVISION MEDIA vs. COPLAND ROAD CAPITAL | CNVISION MEDIA vs. BROADSTNET LEADL 00025 | CNVISION MEDIA vs. TITANIUM TRANSPORTGROUP | CNVISION MEDIA vs. QUEEN S ROAD |
| POSCO Holdings vs. JJ SNACK FOODS | POSCO Holdings vs. Live Nation Entertainment | POSCO Holdings vs. CNVISION MEDIA | POSCO Holdings vs. XLMedia PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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