Correlation Between Tae Kyung and Kyung In
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and Kyung In 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 Tae Kyung and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Tae Kyung and Kyung In 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 Tae Kyung with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and Kyung In.
Diversification Opportunities for Tae Kyung and Kyung In
Average diversification
The 3 months correlation between Tae and Kyung is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Tae Kyung 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 Tae Kyung Chemical are associated (or correlated) with Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Tae Kyung i.e., Tae Kyung and Kyung In go up and down completely randomly.
Pair Corralation between Tae Kyung and Kyung In
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to generate 1.46 times more return on investment than Kyung In. However, Tae Kyung is 1.46 times more volatile than Kyung In Synthetic Corp. It trades about -0.03 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.07 per unit of risk. If you would invest 1,122,000 in Tae Kyung Chemical on November 7, 2024 and sell it today you would lose (16,000) from holding Tae Kyung Chemical or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Tae Kyung Chemical |
| Kyung In Synthetic |
Tae Kyung and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and Kyung In
The main advantage of trading using opposite Tae Kyung and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung vs. Microfriend |
| Kyung In vs. AptaBio Therapeutics | Kyung In vs. Daewoo SBI SPAC | Kyung In vs. Dream Security co | Kyung In vs. Microfriend |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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