Correlation Between Kukdo Chemical and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical and Samyoung Electronics 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 Samyoung Electronics 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Kukdo Chemical and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and Samyoung Electronics.
Diversification Opportunities for Kukdo Chemical and Samyoung Electronics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kukdo and Samyoung is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical Co and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Kukdo Chemical i.e., Kukdo Chemical and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Kukdo Chemical and Samyoung Electronics
Assuming the 90 days trading horizon Kukdo Chemical Co is expected to under-perform the Samyoung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Kukdo Chemical Co is 1.06 times less risky than Samyoung Electronics. The stock trades about -0.04 of its potential returns per unit of risk. The Samyoung Electronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 768,956 in Samyoung Electronics Co on August 25, 2024 and sell it today you would earn a total of 251,044 from holding Samyoung Electronics Co or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Kukdo Chemical Co vs. Samyoung Electronics Co
Performance |
| Timeline |
| Kukdo Chemical |
| Samyoung Electronics |
Kukdo Chemical and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and Samyoung Electronics
The main advantage of trading using opposite Kukdo Chemical and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Kukdo Chemical vs. Dongwoo Farm To | Kukdo Chemical vs. Stic Investments | Kukdo Chemical vs. Korea Investment Holdings | Kukdo Chemical vs. ENERGYMACHINERY KOREA CoLtd |
| Samyoung Electronics vs. Kukdo Chemical Co | Samyoung Electronics vs. Ni Steel | Samyoung Electronics vs. Hanil Iron Steel | Samyoung Electronics vs. Husteel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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