Correlation Between Pantech Group and Coraza Integrated

Can any of the company-specific risk be diversified away by investing in both Pantech Group and Coraza Integrated 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 Pantech Group and Coraza Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pantech Group Holdings and Coraza Integrated Technology, you can compare the effects of market volatilities on Pantech Group and Coraza Integrated 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 Pantech Group with a short position of Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Coraza Integrated.

Diversification Opportunities for Pantech Group and Coraza Integrated

-0.33

Correlation Coefficient

Pantech Group  Coraza Integrated

Very good diversification

The 3 months correlation between Pantech and Coraza is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of Pantech Group i.e., Pantech Group and Coraza Integrated go up and down completely randomly.

Pair Corralation between Pantech Group and Coraza Integrated

Assuming the 90 days trading horizon Pantech Group Holdings is expected to under-perform the Coraza Integrated. But the stock apears to be less risky and, when comparing its historical volatility, Pantech Group Holdings is 4.29 times less risky than Coraza Integrated. The stock trades about -0.19 of its potential returns per unit of risk. The Coraza Integrated Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  49.00  in Coraza Integrated Technology on December 1, 2024 and sell it today you would earn a total of  5.00  from holding Coraza Integrated Technology or generate 10.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pantech Group Holdings  vs.  Coraza Integrated Technology

Pantech Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pantech Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Coraza Integrated

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coraza Integrated Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Coraza Integrated disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pantech Group and Coraza Integrated

The main advantage of trading using opposite Pantech Group and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.

The idea behind Pantech Group Holdings and Coraza Integrated Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.