Correlation Between FOODWELL and Kia Corp
Can any of the company-specific risk be diversified away by investing in both FOODWELL and Kia Corp 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 FOODWELL and Kia Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOODWELL Co and Kia Corp, you can compare the effects of market volatilities on FOODWELL and Kia Corp 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 FOODWELL with a short position of Kia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOODWELL and Kia Corp.
Diversification Opportunities for FOODWELL and Kia Corp
Good diversification
The 3 months correlation between FOODWELL and Kia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FOODWELL Co and Kia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kia Corp and FOODWELL 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 FOODWELL Co are associated (or correlated) with Kia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kia Corp has no effect on the direction of FOODWELL i.e., FOODWELL and Kia Corp go up and down completely randomly.
Pair Corralation between FOODWELL and Kia Corp
Assuming the 90 days trading horizon FOODWELL Co is expected to generate 1.0 times more return on investment than Kia Corp. However, FOODWELL Co is 1.0 times less risky than Kia Corp. It trades about -0.05 of its potential returns per unit of risk. Kia Corp is currently generating about -0.08 per unit of risk. If you would invest 584,000 in FOODWELL Co on September 3, 2024 and sell it today you would lose (85,000) from holding FOODWELL Co or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOODWELL Co vs. Kia Corp
Performance |
| Timeline |
| FOODWELL |
| Kia Corp |
FOODWELL and Kia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOODWELL and Kia Corp
The main advantage of trading using opposite FOODWELL and Kia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOODWELL position performs unexpectedly, Kia Corp 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 Kia Corp will offset losses from the drop in Kia Corp's long position.| FOODWELL vs. Nam Hwa Construction | FOODWELL vs. Daewoo Engineering Construction | FOODWELL vs. Sam Yang Foods | FOODWELL vs. Keyang Electric Machinery |
| Kia Corp vs. CJ Seafood Corp | Kia Corp vs. Youl Chon Chemical | Kia Corp vs. Miwon Chemical | Kia Corp vs. FOODWELL 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |