Correlation Between POSCO Holdings and Mirage Energy
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Mirage Energy 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 Mirage Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Mirage Energy Corp, you can compare the effects of market volatilities on POSCO Holdings and Mirage Energy 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 Mirage Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Mirage Energy.
Diversification Opportunities for POSCO Holdings and Mirage Energy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between POSCO and Mirage is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Mirage Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirage Energy Corp 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 Mirage Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirage Energy Corp has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Mirage Energy go up and down completely randomly.
Pair Corralation between POSCO Holdings and Mirage Energy
Considering the 90-day investment horizon POSCO Holdings is expected to under-perform the Mirage Energy. But the stock apears to be less risky and, when comparing its historical volatility, POSCO Holdings is 9.85 times less risky than Mirage Energy. The stock trades about -0.16 of its potential returns per unit of risk. The Mirage Energy Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.70 in Mirage Energy Corp on August 24, 2024 and sell it today you would lose (0.20) from holding Mirage Energy Corp or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Mirage Energy Corp
Performance |
| Timeline |
| POSCO Holdings |
| Mirage Energy Corp |
POSCO Holdings and Mirage Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Mirage Energy
The main advantage of trading using opposite POSCO Holdings and Mirage Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Mirage Energy 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 Mirage Energy will offset losses from the drop in Mirage Energy'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 |
| Mirage Energy vs. Martin Midstream Partners | Mirage Energy vs. Kinetik Holdings | Mirage Energy vs. NGL Energy Partners | Mirage Energy vs. Genesis Energy LP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |