Correlation Between Okins Electronics and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Okins Electronics and Puloon Technology 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 Okins Electronics and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Puloon Technology, you can compare the effects of market volatilities on Okins Electronics and Puloon Technology 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 Okins Electronics with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Puloon Technology.
Diversification Opportunities for Okins Electronics and Puloon Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okins and Puloon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Okins Electronics 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 Okins Electronics Co are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Okins Electronics i.e., Okins Electronics and Puloon Technology go up and down completely randomly.
Pair Corralation between Okins Electronics and Puloon Technology
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Puloon Technology. In addition to that, Okins Electronics is 1.83 times more volatile than Puloon Technology. It trades about -0.04 of its total potential returns per unit of risk. Puloon Technology is currently generating about -0.02 per unit of volatility. If you would invest 878,000 in Puloon Technology on September 25, 2024 and sell it today you would lose (175,000) from holding Puloon Technology or give up 19.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Okins Electronics Co vs. Puloon Technology
Performance |
Timeline |
Okins Electronics |
Puloon Technology |
Okins Electronics and Puloon Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Okins Electronics and Puloon Technology
The main advantage of trading using opposite Okins Electronics and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.Okins Electronics vs. Dongsin Engineering Construction | Okins Electronics vs. Doosan Fuel Cell | Okins Electronics vs. Daishin Balance 1 | Okins Electronics vs. Total Soft Bank |
Puloon Technology vs. Hanil Iron Steel | Puloon Technology vs. Korea Electronic Certification | Puloon Technology vs. Insun Environment New | Puloon Technology vs. Okins Electronics 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |