Correlation Between Taeyang Metal and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Taeyang Metal and Kukil Metal 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 Taeyang Metal and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taeyang Metal Industrial and Kukil Metal Co, you can compare the effects of market volatilities on Taeyang Metal and Kukil Metal 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 Taeyang Metal with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taeyang Metal and Kukil Metal.
Diversification Opportunities for Taeyang Metal and Kukil Metal
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Taeyang and Kukil is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Taeyang Metal Industrial and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Taeyang Metal 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 Taeyang Metal Industrial are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Taeyang Metal i.e., Taeyang Metal and Kukil Metal go up and down completely randomly.
Pair Corralation between Taeyang Metal and Kukil Metal
Assuming the 90 days trading horizon Taeyang Metal Industrial is expected to generate 1.35 times more return on investment than Kukil Metal. However, Taeyang Metal is 1.35 times more volatile than Kukil Metal Co. It trades about 0.04 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.01 per unit of risk. If you would invest 331,084 in Taeyang Metal Industrial on August 31, 2024 and sell it today you would earn a total of 85,416 from holding Taeyang Metal Industrial or generate 25.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taeyang Metal Industrial vs. Kukil Metal Co
Performance |
| Timeline |
| Taeyang Metal Industrial |
| Kukil Metal |
Taeyang Metal and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taeyang Metal and Kukil Metal
The main advantage of trading using opposite Taeyang Metal and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taeyang Metal position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Taeyang Metal vs. AptaBio Therapeutics | Taeyang Metal vs. Daewoo SBI SPAC | Taeyang Metal vs. Dream Security co | Taeyang Metal vs. Microfriend |
| Kukil Metal vs. INFINITT Healthcare Co | Kukil Metal vs. CKH Food Health | Kukil Metal vs. Asiana Airlines | Kukil Metal vs. POSCO M TECH 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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