Correlation Between FullNet Communications and POSCO Holdings
Can any of the company-specific risk be diversified away by investing in both FullNet Communications and POSCO Holdings 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 FullNet Communications and POSCO Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FullNet Communications and POSCO Holdings, you can compare the effects of market volatilities on FullNet Communications and POSCO Holdings 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 FullNet Communications with a short position of POSCO Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FullNet Communications and POSCO Holdings.
Diversification Opportunities for FullNet Communications and POSCO Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FullNet and POSCO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FullNet Communications and POSCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO Holdings and FullNet Communications 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 FullNet Communications are associated (or correlated) with POSCO Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO Holdings has no effect on the direction of FullNet Communications i.e., FullNet Communications and POSCO Holdings go up and down completely randomly.
Pair Corralation between FullNet Communications and POSCO Holdings
Given the investment horizon of 90 days FullNet Communications is expected to under-perform the POSCO Holdings. In addition to that, FullNet Communications is 1.3 times more volatile than POSCO Holdings. It trades about -0.01 of its total potential returns per unit of risk. POSCO Holdings is currently generating about 0.05 per unit of volatility. If you would invest 5,119 in POSCO Holdings on September 10, 2025 and sell it today you would earn a total of 276.00 from holding POSCO Holdings or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FullNet Communications vs. POSCO Holdings
Performance |
| Timeline |
| FullNet Communications |
| POSCO Holdings |
FullNet Communications and POSCO Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FullNet Communications and POSCO Holdings
The main advantage of trading using opposite FullNet Communications and POSCO Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FullNet Communications position performs unexpectedly, POSCO Holdings 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 POSCO Holdings will offset losses from the drop in POSCO Holdings' long position.| FullNet Communications vs. Putnam Focused Large | FullNet Communications vs. Alcoa Corp | FullNet Communications vs. Procter Gamble | FullNet Communications vs. McDonalds |
| POSCO Holdings vs. Reliance Steel Aluminum | POSCO Holdings vs. Steel Dynamics | POSCO Holdings vs. Dow Inc | POSCO Holdings vs. Teck Resources Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |