Correlation Between Kuk Young and IL Science
Can any of the company-specific risk be diversified away by investing in both Kuk Young and IL Science 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 IL Science 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 IL Science Co, you can compare the effects of market volatilities on Kuk Young and IL Science 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 IL Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuk Young and IL Science.
Diversification Opportunities for Kuk Young and IL Science
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuk and 307180 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kuk Young GM and IL Science Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IL Science 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 IL Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IL Science has no effect on the direction of Kuk Young i.e., Kuk Young and IL Science go up and down completely randomly.
Pair Corralation between Kuk Young and IL Science
Assuming the 90 days trading horizon Kuk Young GM is expected to generate 2.4 times more return on investment than IL Science. However, Kuk Young is 2.4 times more volatile than IL Science Co. It trades about 0.05 of its potential returns per unit of risk. IL Science Co is currently generating about -0.05 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuk Young GM vs. IL Science Co
Performance |
| Timeline |
| Kuk Young GM |
| IL Science |
Kuk Young and IL Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuk Young and IL Science
The main advantage of trading using opposite Kuk Young and IL Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuk Young position performs unexpectedly, IL Science 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 IL Science will offset losses from the drop in IL Science'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 |
| IL Science vs. Sam Yang Foods | IL Science vs. Polaris Office Corp | IL Science vs. Heungkuk Metaltech CoLtd | IL Science vs. ABOV Semiconductor 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |