Correlation Between GS Engineering and Korea Alcohol
Can any of the company-specific risk be diversified away by investing in both GS Engineering and Korea Alcohol 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 GS Engineering and Korea Alcohol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and Korea Alcohol Industrial, you can compare the effects of market volatilities on GS Engineering and Korea Alcohol 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 GS Engineering with a short position of Korea Alcohol. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and Korea Alcohol.
Diversification Opportunities for GS Engineering and Korea Alcohol
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 006360 and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and Korea Alcohol Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Alcohol Industrial and GS Engineering 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 GS Engineering Construction are associated (or correlated) with Korea Alcohol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Alcohol Industrial has no effect on the direction of GS Engineering i.e., GS Engineering and Korea Alcohol go up and down completely randomly.
Pair Corralation between GS Engineering and Korea Alcohol
Assuming the 90 days trading horizon GS Engineering Construction is expected to generate 1.77 times more return on investment than Korea Alcohol. However, GS Engineering is 1.77 times more volatile than Korea Alcohol Industrial. It trades about 0.06 of its potential returns per unit of risk. Korea Alcohol Industrial is currently generating about -0.05 per unit of risk. If you would invest 1,447,000 in GS Engineering Construction on October 12, 2024 and sell it today you would earn a total of 327,000 from holding GS Engineering Construction or generate 22.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Engineering Construction vs. Korea Alcohol Industrial
Performance |
| Timeline |
| GS Engineering Const |
| Korea Alcohol Industrial |
GS Engineering and Korea Alcohol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and Korea Alcohol
The main advantage of trading using opposite GS Engineering and Korea Alcohol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering position performs unexpectedly, Korea Alcohol 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 Korea Alcohol will offset losses from the drop in Korea Alcohol's long position.| GS Engineering vs. Daishin Information Communications | GS Engineering vs. Duksan Hi Metal | GS Engineering vs. Seoyon Topmetal Co | GS Engineering vs. Display Tech Co |
| Korea Alcohol vs. Samji Electronics Co | Korea Alcohol vs. GS Engineering Construction | Korea Alcohol vs. Hansol Homedeco Co | Korea Alcohol vs. Polaris Office Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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