Correlation Between Kuk Young and Cheryong Industrial
Can any of the company-specific risk be diversified away by investing in both Kuk Young and Cheryong Industrial 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 Kuk Young and Cheryong Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuk Young GM and Cheryong Industrial CoLtd, you can compare the effects of market volatilities on Kuk Young and Cheryong Industrial 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 Kuk Young with a short position of Cheryong Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuk Young and Cheryong Industrial.
Diversification Opportunities for Kuk Young and Cheryong Industrial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kuk and Cheryong is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kuk Young GM and Cheryong Industrial CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheryong Industrial CoLtd and Kuk Young 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 Kuk Young GM are associated (or correlated) with Cheryong Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheryong Industrial CoLtd has no effect on the direction of Kuk Young i.e., Kuk Young and Cheryong Industrial go up and down completely randomly.
Pair Corralation between Kuk Young and Cheryong Industrial
Assuming the 90 days trading horizon Kuk Young GM is expected to generate 1.41 times more return on investment than Cheryong Industrial. However, Kuk Young is 1.41 times more volatile than Cheryong Industrial CoLtd. It trades about 0.05 of its potential returns per unit of risk. Cheryong Industrial CoLtd is currently generating about 0.03 per unit of risk. If you would invest 166,031 in Kuk Young GM on November 2, 2024 and sell it today you would earn a total of 20,969 from holding Kuk Young GM or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuk Young GM vs. Cheryong Industrial CoLtd
Performance |
| Timeline |
| Kuk Young GM |
| Cheryong Industrial CoLtd |
Kuk Young and Cheryong Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuk Young and Cheryong Industrial
The main advantage of trading using opposite Kuk Young and Cheryong Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuk Young position performs unexpectedly, Cheryong Industrial 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 Cheryong Industrial will offset losses from the drop in Cheryong Industrial's long position.| Kuk Young vs. Lotte Data Communication | Kuk Young vs. INFINITT Healthcare Co | Kuk Young vs. Samsung Publishing Co | Kuk Young vs. Infinitt Healthcare Co |
| Cheryong Industrial vs. Grand Korea Leisure | Cheryong Industrial vs. Dongkuk Structures Construction | Cheryong Industrial vs. Tuksu Engineering ConstructionLtd | Cheryong Industrial vs. SK Telecom 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |