Correlation Between Kukdo Chemical and Dongbang Transport
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical and Dongbang Transport 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 Dongbang Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukdo Chemical Co and Dongbang Transport Logistics, you can compare the effects of market volatilities on Kukdo Chemical and Dongbang Transport 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 Dongbang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and Dongbang Transport.
Diversification Opportunities for Kukdo Chemical and Dongbang Transport
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kukdo and Dongbang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical Co and Dongbang Transport Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbang Transport 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 Co are associated (or correlated) with Dongbang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbang Transport has no effect on the direction of Kukdo Chemical i.e., Kukdo Chemical and Dongbang Transport go up and down completely randomly.
Pair Corralation between Kukdo Chemical and Dongbang Transport
Assuming the 90 days trading horizon Kukdo Chemical Co is expected to under-perform the Dongbang Transport. In addition to that, Kukdo Chemical is 1.24 times more volatile than Dongbang Transport Logistics. It trades about -0.06 of its total potential returns per unit of risk. Dongbang Transport Logistics is currently generating about 0.17 per unit of volatility. If you would invest 217,000 in Dongbang Transport Logistics on October 26, 2024 and sell it today you would earn a total of 9,000 from holding Dongbang Transport Logistics or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdo Chemical Co vs. Dongbang Transport Logistics
Performance |
| Timeline |
| Kukdo Chemical |
| Dongbang Transport |
Kukdo Chemical and Dongbang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and Dongbang Transport
The main advantage of trading using opposite Kukdo Chemical and Dongbang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical position performs unexpectedly, Dongbang Transport 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 Dongbang Transport will offset losses from the drop in Dongbang Transport's long position.| Kukdo Chemical vs. Hyundai Green Food | Kukdo Chemical vs. FOODWELL Co | Kukdo Chemical vs. Nam Hwa Construction | Kukdo Chemical vs. Daewoo Engineering Construction |
| Dongbang Transport vs. KB Financial Group | Dongbang Transport vs. Shinhan Financial Group | Dongbang Transport vs. Hana Financial | Dongbang Transport 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance |