Correlation Between Korea Investment and PNC Technologies
Can any of the company-specific risk be diversified away by investing in both Korea Investment and PNC Technologies 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 PNC Technologies 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 PNC Technologies co, you can compare the effects of market volatilities on Korea Investment and PNC Technologies 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 PNC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and PNC Technologies.
Diversification Opportunities for Korea Investment and PNC Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and PNC is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and PNC Technologies co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Technologies 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 PNC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Technologies has no effect on the direction of Korea Investment i.e., Korea Investment and PNC Technologies go up and down completely randomly.
Pair Corralation between Korea Investment and PNC Technologies
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.62 times more return on investment than PNC Technologies. However, Korea Investment Holdings is 1.62 times less risky than PNC Technologies. It trades about 0.06 of its potential returns per unit of risk. PNC Technologies co is currently generating about -0.07 per unit of risk. If you would invest 5,190,000 in Korea Investment Holdings on October 11, 2024 and sell it today you would earn a total of 250,000 from holding Korea Investment Holdings or generate 4.82% 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. PNC Technologies co
Performance |
Timeline |
Korea Investment Holdings |
PNC Technologies |
Korea Investment and PNC Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea Investment and PNC Technologies
The main advantage of trading using opposite Korea Investment and PNC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, PNC Technologies 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 PNC Technologies will offset losses from the drop in PNC Technologies' long position.Korea Investment vs. Foodnamoo | Korea Investment vs. Alton Sports CoLtd | Korea Investment vs. Ssangyong Materials Corp | Korea Investment vs. Hansol Homedeco Co |
PNC Technologies vs. Samlip General Foods | PNC Technologies vs. Korea Investment Holdings | PNC Technologies vs. SBI Investment KOREA | PNC Technologies vs. Foodnamoo |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |