Correlation Between Kg Chemical and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Kg Chemical and Tuksu Engineering 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 Kg Chemical and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kg Chemical and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Kg Chemical and Tuksu Engineering 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 Kg Chemical with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kg Chemical and Tuksu Engineering.
Diversification Opportunities for Kg Chemical and Tuksu Engineering
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 001390 and Tuksu is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kg Chemical and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and Kg Chemical 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 Kg Chemical are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Kg Chemical i.e., Kg Chemical and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Kg Chemical and Tuksu Engineering
Assuming the 90 days trading horizon Kg Chemical is expected to generate 1.53 times more return on investment than Tuksu Engineering. However, Kg Chemical is 1.53 times more volatile than Tuksu Engineering ConstructionLtd. It trades about 0.01 of its potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about -0.01 per unit of risk. If you would invest 457,268 in Kg Chemical on October 25, 2024 and sell it today you would lose (74,268) from holding Kg Chemical or give up 16.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Kg Chemical vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Kg Chemical |
| Tuksu Engineering |
Kg Chemical and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kg Chemical and Tuksu Engineering
The main advantage of trading using opposite Kg Chemical and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kg Chemical position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Kg Chemical vs. Duksan Hi Metal | Kg Chemical vs. Lee Ku Industrial | Kg Chemical vs. Tamul Multimedia Co | Kg Chemical vs. SKONEC Entertainment Co |
| Tuksu Engineering vs. Shinhan Financial Group | Tuksu Engineering vs. Nh Investment And | Tuksu Engineering vs. Dongbu Insurance Co | Tuksu Engineering vs. Korean Reinsurance Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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