Correlation Between State Farm and Korea Closed
Can any of the company-specific risk be diversified away by investing in both State Farm and Korea Closed 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 State Farm and Korea Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Farm Growth and Korea Closed, you can compare the effects of market volatilities on State Farm and Korea Closed 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 State Farm with a short position of Korea Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Farm and Korea Closed.
Diversification Opportunities for State Farm and Korea Closed
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Korea is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding State Farm Growth and Korea Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Closed and State Farm 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 State Farm Growth are associated (or correlated) with Korea Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Closed has no effect on the direction of State Farm i.e., State Farm and Korea Closed go up and down completely randomly.
Pair Corralation between State Farm and Korea Closed
Assuming the 90 days horizon State Farm Growth is expected to generate 0.45 times more return on investment than Korea Closed. However, State Farm Growth is 2.21 times less risky than Korea Closed. It trades about 0.14 of its potential returns per unit of risk. Korea Closed is currently generating about -0.19 per unit of risk. If you would invest 12,789 in State Farm Growth on August 28, 2024 and sell it today you would earn a total of 241.00 from holding State Farm Growth or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Farm Growth vs. Korea Closed
Performance |
| Timeline |
| State Farm Growth |
| Korea Closed |
State Farm and Korea Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Farm and Korea Closed
The main advantage of trading using opposite State Farm and Korea Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Farm position performs unexpectedly, Korea Closed 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 Korea Closed will offset losses from the drop in Korea Closed's long position.| State Farm vs. Boston Partners Small | State Farm vs. Heartland Value Plus | State Farm vs. Queens Road Small | State Farm vs. Small Cap Value Series |
| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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