Correlation Between POSCO Holdings and Globex Mining
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Globex Mining 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 POSCO Holdings and Globex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Globex Mining Enterprises, you can compare the effects of market volatilities on POSCO Holdings and Globex Mining 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 POSCO Holdings with a short position of Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Globex Mining.
Diversification Opportunities for POSCO Holdings and Globex Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between POSCO and Globex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Globex Mining go up and down completely randomly.
Pair Corralation between POSCO Holdings and Globex Mining
Assuming the 90 days horizon POSCO Holdings is expected to under-perform the Globex Mining. But the stock apears to be less risky and, when comparing its historical volatility, POSCO Holdings is 1.01 times less risky than Globex Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Globex Mining Enterprises is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Globex Mining Enterprises on November 5, 2024 and sell it today you would earn a total of 27.00 from holding Globex Mining Enterprises or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Globex Mining Enterprises
Performance |
| Timeline |
| POSCO Holdings |
| Globex Mining Enterprises |
POSCO Holdings and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Globex Mining
The main advantage of trading using opposite POSCO Holdings and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| POSCO Holdings vs. Goosehead Insurance | POSCO Holdings vs. REVO INSURANCE SPA | POSCO Holdings vs. Singapore Reinsurance | POSCO Holdings vs. Tokyu Construction Co |
| Globex Mining vs. PKSHA TECHNOLOGY INC | Globex Mining vs. HELIOS TECHS INC | Globex Mining vs. Agilent Technologies | Globex Mining vs. CLEAN ENERGY FUELS |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |