Correlation Between Incar Financial and Insung Information
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Insung Information 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 Incar Financial and Insung Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Insung Information Co, you can compare the effects of market volatilities on Incar Financial and Insung Information 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 Incar Financial with a short position of Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Insung Information.
Diversification Opportunities for Incar Financial and Insung Information
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Incar and Insung is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung Information and Incar Financial 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 Incar Financial Service are associated (or correlated) with Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Incar Financial i.e., Incar Financial and Insung Information go up and down completely randomly.
Pair Corralation between Incar Financial and Insung Information
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 1.18 times more return on investment than Insung Information. However, Incar Financial is 1.18 times more volatile than Insung Information Co. It trades about 0.12 of its potential returns per unit of risk. Insung Information Co is currently generating about -0.1 per unit of risk. If you would invest 447,500 in Incar Financial Service on September 25, 2024 and sell it today you would earn a total of 102,500 from holding Incar Financial Service or generate 22.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Incar Financial Service vs. Insung Information Co
Performance |
Timeline |
Incar Financial Service |
Insung Information |
Incar Financial and Insung Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Incar Financial and Insung Information
The main advantage of trading using opposite Incar Financial and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information's long position.Incar Financial vs. Amogreentech Co | Incar Financial vs. Eagle Veterinary Technology | Incar Financial vs. Raontech | Incar Financial vs. National Plastic Co |
Insung Information vs. Infinitt Healthcare Co | Insung Information vs. Korean Reinsurance Co | Insung Information vs. Incar Financial Service | Insung Information vs. Settlebank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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