Correlation Between Industrial Bank and Okong
Can any of the company-specific risk be diversified away by investing in both Industrial Bank and Okong 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 Industrial Bank and Okong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Bank and Okong, you can compare the effects of market volatilities on Industrial Bank and Okong 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 Industrial Bank with a short position of Okong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Okong.
Diversification Opportunities for Industrial Bank and Okong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Okong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank and Okong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okong and Industrial Bank 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 Industrial Bank are associated (or correlated) with Okong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okong has no effect on the direction of Industrial Bank i.e., Industrial Bank and Okong go up and down completely randomly.
Pair Corralation between Industrial Bank and Okong
If you would invest 1,322,000 in Industrial Bank on February 3, 2024 and sell it today you would earn a total of 38,000 from holding Industrial Bank or generate 2.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
Industrial Bank vs. Okong
Performance |
Timeline |
Industrial Bank |
Okong |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Industrial Bank and Okong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial Bank and Okong
The main advantage of trading using opposite Industrial Bank and Okong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Okong 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 Okong will offset losses from the drop in Okong's long position.Industrial Bank vs. Samick Musical Instruments | Industrial Bank vs. BusinessOn Communication Co | Industrial Bank vs. Haitai Confectionery Foods | Industrial Bank vs. Nable Communications |
Okong vs. Korea Petro Chemical | Okong vs. Tae Kyung Chemical | Okong vs. Aekyung Petrochemical Co | Okong vs. Sung Bo Chemicals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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