Correlation Between EBEST Investment and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Koryo Credit 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 EBEST Investment and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBEST Investment Securities and Koryo Credit Information, you can compare the effects of market volatilities on EBEST Investment and Koryo Credit 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 EBEST Investment with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Koryo Credit.
Diversification Opportunities for EBEST Investment and Koryo Credit
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EBEST and Koryo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and EBEST 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 EBEST Investment Securities are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of EBEST Investment i.e., EBEST Investment and Koryo Credit go up and down completely randomly.
Pair Corralation between EBEST Investment and Koryo Credit
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Koryo Credit. In addition to that, EBEST Investment is 1.42 times more volatile than Koryo Credit Information. It trades about -0.13 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about 0.06 per unit of volatility. If you would invest 994,000 in Koryo Credit Information on September 25, 2024 and sell it today you would earn a total of 28,000 from holding Koryo Credit Information or generate 2.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
EBEST Investment Securities vs. Koryo Credit Information
Performance |
Timeline |
EBEST Investment Sec |
Koryo Credit Information |
EBEST Investment and Koryo Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EBEST Investment and Koryo Credit
The main advantage of trading using opposite EBEST Investment and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hyundai Motor | EBEST Investment vs. Hyundai Motor Co |
Koryo Credit vs. DSC Investment | Koryo Credit vs. Mobileleader CoLtd | Koryo Credit vs. Korea Information Communications | Koryo Credit vs. EBEST Investment Securities |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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