Correlation Between Kukdo Chemical and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical and EBEST Investment 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 Kukdo Chemical and EBEST Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukdo Chemical and EBEST Investment Securities, you can compare the effects of market volatilities on Kukdo Chemical and EBEST Investment 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 Kukdo Chemical with a short position of EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and EBEST Investment.
Diversification Opportunities for Kukdo Chemical and EBEST Investment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukdo and EBEST is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec and Kukdo Chemical 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 Kukdo Chemical are associated (or correlated) with EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Kukdo Chemical i.e., Kukdo Chemical and EBEST Investment go up and down completely randomly.
Pair Corralation between Kukdo Chemical and EBEST Investment
Assuming the 90 days trading horizon Kukdo Chemical is expected to under-perform the EBEST Investment. In addition to that, Kukdo Chemical is 1.08 times more volatile than EBEST Investment Securities. It trades about -0.03 of its total potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.02 per unit of volatility. If you would invest 525,857 in EBEST Investment Securities on September 14, 2024 and sell it today you would lose (132,857) from holding EBEST Investment Securities or give up 25.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kukdo Chemical vs. EBEST Investment Securities
Performance |
| Timeline |
| Kukdo Chemical |
| EBEST Investment Sec |
Kukdo Chemical and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and EBEST Investment
The main advantage of trading using opposite Kukdo Chemical and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Kukdo Chemical vs. EBEST Investment Securities | Kukdo Chemical vs. Woori Technology Investment | Kukdo Chemical vs. WONIK Materials CoLtd | Kukdo Chemical vs. Stic Investments |
| EBEST Investment vs. KB Financial Group | EBEST Investment vs. Shinhan Financial Group | EBEST Investment vs. Hana Financial | EBEST Investment vs. Woori Financial Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |