Correlation Between Kia Corp and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Kia Corp and Hankukpackage 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 Kia Corp and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kia Corp and Hankukpackage Co, you can compare the effects of market volatilities on Kia Corp and Hankukpackage 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 Kia Corp with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kia Corp and Hankukpackage.
Diversification Opportunities for Kia Corp and Hankukpackage
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kia and Hankukpackage is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kia Corp and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Kia Corp 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 Kia Corp are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Kia Corp i.e., Kia Corp and Hankukpackage go up and down completely randomly.
Pair Corralation between Kia Corp and Hankukpackage
Assuming the 90 days trading horizon Kia Corp is expected to generate 1.51 times more return on investment than Hankukpackage. However, Kia Corp is 1.51 times more volatile than Hankukpackage Co. It trades about -0.1 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.27 per unit of risk. If you would invest 9,740,000 in Kia Corp on September 3, 2024 and sell it today you would lose (450,000) from holding Kia Corp or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kia Corp vs. Hankukpackage Co
Performance |
| Timeline |
| Kia Corp |
| Hankukpackage |
Kia Corp and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kia Corp and Hankukpackage
The main advantage of trading using opposite Kia Corp and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kia Corp position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Kia Corp vs. CJ Seafood Corp | Kia Corp vs. Youl Chon Chemical | Kia Corp vs. Miwon Chemical | Kia Corp vs. FOODWELL Co |
| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. UNISEM Co | Hankukpackage vs. RPBio Inc | Hankukpackage vs. Finebesteel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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