Correlation Between Kia Corp and Sangsangin
Can any of the company-specific risk be diversified away by investing in both Kia Corp and Sangsangin 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 Sangsangin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kia Corp and Sangsangin Co, you can compare the effects of market volatilities on Kia Corp and Sangsangin 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 Sangsangin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kia Corp and Sangsangin.
Diversification Opportunities for Kia Corp and Sangsangin
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kia and Sangsangin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kia Corp and Sangsangin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin 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 Sangsangin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin has no effect on the direction of Kia Corp i.e., Kia Corp and Sangsangin go up and down completely randomly.
Pair Corralation between Kia Corp and Sangsangin
Assuming the 90 days trading horizon Kia Corp is expected to generate 1.13 times less return on investment than Sangsangin. But when comparing it to its historical volatility, Kia Corp is 1.31 times less risky than Sangsangin. It trades about 0.02 of its potential returns per unit of risk. Sangsangin Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 148,200 in Sangsangin Co on November 3, 2024 and sell it today you would earn a total of 500.00 from holding Sangsangin Co or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kia Corp vs. Sangsangin Co
Performance |
| Timeline |
| Kia Corp |
| Sangsangin |
Kia Corp and Sangsangin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kia Corp and Sangsangin
The main advantage of trading using opposite Kia Corp and Sangsangin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kia Corp position performs unexpectedly, Sangsangin 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 Sangsangin will offset losses from the drop in Sangsangin's long position.| Kia Corp vs. Jeju Bank | Kia Corp vs. Nature and Environment | Kia Corp vs. Lotte Non Life Insurance | Kia Corp vs. Hyundai BNG Steel |
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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 Stocks Directory module to find actively traded stocks across global markets.
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