Correlation Between Korea Electric and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both Korea Electric and Fusion Fuel 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 Korea Electric and Fusion Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Electric Power and Fusion Fuel Green, you can compare the effects of market volatilities on Korea Electric and Fusion Fuel 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 Korea Electric with a short position of Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electric and Fusion Fuel.
Diversification Opportunities for Korea Electric and Fusion Fuel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Fusion is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electric Power and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green and Korea Electric 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 Korea Electric Power are associated (or correlated) with Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Korea Electric i.e., Korea Electric and Fusion Fuel go up and down completely randomly.
Pair Corralation between Korea Electric and Fusion Fuel
Considering the 90-day investment horizon Korea Electric Power is expected to generate 0.14 times more return on investment than Fusion Fuel. However, Korea Electric Power is 7.02 times less risky than Fusion Fuel. It trades about 0.21 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about -0.04 per unit of risk. If you would invest 1,333 in Korea Electric Power on August 30, 2025 and sell it today you would earn a total of 486.50 from holding Korea Electric Power or generate 36.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Electric Power vs. Fusion Fuel Green
Performance |
| Timeline |
| Korea Electric Power |
| Fusion Fuel Green |
Korea Electric and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electric and Fusion Fuel
The main advantage of trading using opposite Korea Electric and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electric position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| Korea Electric vs. Mitsubishi UFJ Lease | Korea Electric vs. China Construction Bank | Korea Electric vs. CanSino Biologics | Korea Electric vs. Construction Partners |
| Fusion Fuel vs. World of Wireless | Fusion Fuel vs. Franklin Wireless Corp | Fusion Fuel vs. T Mobile US, 5500 | Fusion Fuel vs. Adtalem Global Education |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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