Correlation Between Korea Electric and Zura Bio
Can any of the company-specific risk be diversified away by investing in both Korea Electric and Zura Bio 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 Zura Bio 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 Zura Bio Limited, you can compare the effects of market volatilities on Korea Electric and Zura Bio 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 Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electric and Zura Bio.
Diversification Opportunities for Korea Electric and Zura Bio
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Zura is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electric Power and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited 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 Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Korea Electric i.e., Korea Electric and Zura Bio go up and down completely randomly.
Pair Corralation between Korea Electric and Zura Bio
Considering the 90-day investment horizon Korea Electric Power is expected to generate 0.35 times more return on investment than Zura Bio. However, Korea Electric Power is 2.84 times less risky than Zura Bio. It trades about 0.13 of its potential returns per unit of risk. Zura Bio Limited is currently generating about -0.28 per unit of risk. If you would invest 825.00 in Korea Electric Power on August 31, 2024 and sell it today you would earn a total of 47.00 from holding Korea Electric Power or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Electric Power vs. Zura Bio Limited
Performance |
| Timeline |
| Korea Electric Power |
| Zura Bio Limited |
Korea Electric and Zura Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electric and Zura Bio
The main advantage of trading using opposite Korea Electric and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electric position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.| Korea Electric vs. DTE Energy | Korea Electric vs. CenterPoint Energy | Korea Electric vs. Pinnacle West Capital | Korea Electric vs. CMS Energy |
| Zura Bio vs. US Global Investors | Zura Bio vs. Coursera | Zura Bio vs. Artisan Partners Asset | Zura Bio vs. Ihuman Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |