Correlation Between POSCO Holdings and Broadmark Realty

Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Broadmark Realty 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 POSCO Holdings and Broadmark Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between POSCO Holdings and Broadmark Realty Capital, you can compare the effects of market volatilities on POSCO Holdings and Broadmark Realty 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 POSCO Holdings with a short position of Broadmark Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Broadmark Realty.

Diversification Opportunities for POSCO Holdings and Broadmark Realty

0.0

Correlation Coefficient

POSCO Holdings  Broadmark Realty

Pay attention - limited upside

The 3 months correlation between POSCO and Broadmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Broadmark Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadmark Realty Capital and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Broadmark Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadmark Realty Capital has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Broadmark Realty go up and down completely randomly.

Pair Corralation between POSCO Holdings and Broadmark Realty

If you would invest  4,370  in POSCO Holdings on December 25, 2024 and sell it today you would earn a total of  803.00  from holding POSCO Holdings or generate 18.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

POSCO Holdings  vs.  Broadmark Realty Capital

POSCO Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in POSCO Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, POSCO Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Broadmark Realty Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Broadmark Realty Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, Broadmark Realty is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with POSCO Holdings and Broadmark Realty

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

The idea behind POSCO Holdings and Broadmark Realty Capital 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.