Correlation Between Korea Investment and SBI Investment
Can any of the company-specific risk be diversified away by investing in both Korea Investment and SBI Investment 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 Investment and SBI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Investment Holdings and SBI Investment KOREA, you can compare the effects of market volatilities on Korea Investment and SBI Investment 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 Investment with a short position of SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and SBI Investment.
Diversification Opportunities for Korea Investment and SBI Investment
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and SBI is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA and Korea Investment 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 Investment Holdings are associated (or correlated) with SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of Korea Investment i.e., Korea Investment and SBI Investment go up and down completely randomly.
Pair Corralation between Korea Investment and SBI Investment
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.74 times more return on investment than SBI Investment. However, Korea Investment Holdings is 1.36 times less risky than SBI Investment. It trades about 0.18 of its potential returns per unit of risk. SBI Investment KOREA is currently generating about -0.12 per unit of risk. If you would invest 4,940,605 in Korea Investment Holdings on December 30, 2024 and sell it today you would earn a total of 679,395 from holding Korea Investment Holdings or generate 13.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Korea Investment Holdings vs. SBI Investment KOREA
Performance |
Timeline |
Korea Investment Holdings |
SBI Investment KOREA |
Korea Investment and SBI Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea Investment and SBI Investment
The main advantage of trading using opposite Korea Investment and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.Korea Investment vs. Nice Information Telecommunication | Korea Investment vs. GS Retail Co | Korea Investment vs. Daishin Information Communications | Korea Investment vs. BGF Retail Co |
SBI Investment vs. Nable Communications | SBI Investment vs. HB Technology TD | SBI Investment vs. BIT Computer Co | SBI Investment vs. Innowireless 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |