Correlation Between Korea Electric and Catalyst Biosciences
Can any of the company-specific risk be diversified away by investing in both Korea Electric and Catalyst Biosciences 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 Korea Electric and Catalyst Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Electric Power and Catalyst Biosciences, you can compare the effects of market volatilities on Korea Electric and Catalyst Biosciences 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 Korea Electric with a short position of Catalyst Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electric and Catalyst Biosciences.
Diversification Opportunities for Korea Electric and Catalyst Biosciences
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Catalyst is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electric Power and Catalyst Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Biosciences and Korea Electric 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 Korea Electric Power are associated (or correlated) with Catalyst Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Biosciences has no effect on the direction of Korea Electric i.e., Korea Electric and Catalyst Biosciences go up and down completely randomly.
Pair Corralation between Korea Electric and Catalyst Biosciences
If you would invest 702.00 in Korea Electric Power on October 22, 2024 and sell it today you would earn a total of 14.00 from holding Korea Electric Power or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Korea Electric Power vs. Catalyst Biosciences
Performance |
| Timeline |
| Korea Electric Power |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Korea Electric and Catalyst Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electric and Catalyst Biosciences
The main advantage of trading using opposite Korea Electric and Catalyst Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electric position performs unexpectedly, Catalyst Biosciences 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 Catalyst Biosciences will offset losses from the drop in Catalyst Biosciences' long position.| Korea Electric vs. Enel Chile SA | Korea Electric vs. Centrais Eltricas Brasileiras | Korea Electric vs. Central Puerto SA | Korea Electric vs. CMS Energy |
| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |