Correlation Between Korea Information and AFW
Can any of the company-specific risk be diversified away by investing in both Korea Information and AFW 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 Information and AFW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and AFW Co, you can compare the effects of market volatilities on Korea Information and AFW 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 Information with a short position of AFW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and AFW.
Diversification Opportunities for Korea Information and AFW
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and AFW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and AFW Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFW Co and Korea Information 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 Information Communications are associated (or correlated) with AFW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFW Co has no effect on the direction of Korea Information i.e., Korea Information and AFW go up and down completely randomly.
Pair Corralation between Korea Information and AFW
If you would invest 0.00 in AFW Co on December 30, 2024 and sell it today you would earn a total of 0.00 from holding AFW Co or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.69% |
Values | Daily Returns |
Korea Information Communicatio vs. AFW Co
Performance |
Timeline |
Korea Information |
AFW Co |
Risk-Adjusted Performance
Weak
Weak | Strong |
Korea Information and AFW Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea Information and AFW
The main advantage of trading using opposite Korea Information and AFW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, AFW 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 AFW will offset losses from the drop in AFW's long position.Korea Information vs. DB Financial Investment | Korea Information vs. Nice Information Telecommunication | Korea Information vs. Nable Communications | Korea Information vs. NH Investment Securities |
AFW vs. Ssangyong Information Communication | AFW vs. Orbitech Co | AFW vs. FNSTech Co | AFW vs. CU Tech Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |