Correlation Between Korea Refract and Tway Air
Can any of the company-specific risk be diversified away by investing in both Korea Refract and Tway Air 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 Refract and Tway Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Refract and Tway Air Co, you can compare the effects of market volatilities on Korea Refract and Tway Air 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 Refract with a short position of Tway Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Refract and Tway Air.
Diversification Opportunities for Korea Refract and Tway Air
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korea and Tway is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Korea Refract and Tway Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tway Air and Korea Refract 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 Refract are associated (or correlated) with Tway Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tway Air has no effect on the direction of Korea Refract i.e., Korea Refract and Tway Air go up and down completely randomly.
Pair Corralation between Korea Refract and Tway Air
Assuming the 90 days trading horizon Korea Refract is expected to generate 0.23 times more return on investment than Tway Air. However, Korea Refract is 4.3 times less risky than Tway Air. It trades about -0.01 of its potential returns per unit of risk. Tway Air Co is currently generating about -0.01 per unit of risk. If you would invest 215,000 in Korea Refract on December 30, 2024 and sell it today you would lose (2,000) from holding Korea Refract or give up 0.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Korea Refract vs. Tway Air Co
Performance |
Timeline |
Korea Refract |
Tway Air |
Korea Refract and Tway Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea Refract and Tway Air
The main advantage of trading using opposite Korea Refract and Tway Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Refract position performs unexpectedly, Tway Air 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 Tway Air will offset losses from the drop in Tway Air's long position.Korea Refract vs. Settlebank | Korea Refract vs. DB Insurance Co | Korea Refract vs. BNK Financial Group | Korea Refract vs. Incar Financial Service |
Tway Air vs. Global Standard Technology | Tway Air vs. Woori Technology | Tway Air vs. Ilji Technology Co | Tway Air vs. SK Chemicals Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |