Correlation Between POSCO Holdings and Energy Revenue
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Energy Revenue 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 Energy Revenue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Energy Revenue Amer, you can compare the effects of market volatilities on POSCO Holdings and Energy Revenue 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 Energy Revenue. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Energy Revenue.
Diversification Opportunities for POSCO Holdings and Energy Revenue
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POSCO and Energy is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Energy Revenue Amer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Revenue Amer 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 Energy Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Revenue Amer has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Energy Revenue go up and down completely randomly.
Pair Corralation between POSCO Holdings and Energy Revenue
Considering the 90-day investment horizon POSCO Holdings is expected to generate 0.33 times more return on investment than Energy Revenue. However, POSCO Holdings is 3.01 times less risky than Energy Revenue. It trades about -0.19 of its potential returns per unit of risk. Energy Revenue Amer is currently generating about -0.36 per unit of risk. If you would invest 5,383 in POSCO Holdings on September 13, 2024 and sell it today you would lose (606.00) from holding POSCO Holdings or give up 11.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
POSCO Holdings vs. Energy Revenue Amer
Performance |
| Timeline |
| POSCO Holdings |
| Energy Revenue Amer |
POSCO Holdings and Energy Revenue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Energy Revenue
The main advantage of trading using opposite POSCO Holdings and Energy Revenue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Energy Revenue 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 Energy Revenue will offset losses from the drop in Energy Revenue's long position.| POSCO Holdings vs. Olympic Steel | POSCO Holdings vs. Universal Stainless Alloy | POSCO Holdings vs. Outokumpu Oyj ADR | POSCO Holdings vs. Ternium SA ADR |
| Energy Revenue vs. Gulfport Energy Operating | Energy Revenue vs. Magnolia Oil Gas | Energy Revenue vs. Vital Energy | Energy Revenue vs. Texas Pacific Land |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |