Correlation Between Kukdo Chemical and Kyung In
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical 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 Kukdo Chemical and Kyung In 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Kukdo Chemical 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 Kukdo Chemical with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and Kyung In.
Diversification Opportunities for Kukdo Chemical and Kyung In
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kukdo and Kyung is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical Co 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 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 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 Kukdo Chemical i.e., Kukdo Chemical and Kyung In go up and down completely randomly.
Pair Corralation between Kukdo Chemical and Kyung In
Assuming the 90 days trading horizon Kukdo Chemical Co is expected to generate 1.09 times more return on investment than Kyung In. However, Kukdo Chemical is 1.09 times more volatile than Kyung In Synthetic Corp. It trades about -0.02 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.03 per unit of risk. If you would invest 4,567,500 in Kukdo Chemical Co on November 20, 2024 and sell it today you would lose (1,222,500) from holding Kukdo Chemical Co or give up 26.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdo Chemical Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Kukdo Chemical |
| Kyung In Synthetic |
Kukdo Chemical and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and Kyung In
The main advantage of trading using opposite Kukdo Chemical and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical 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.| Kukdo Chemical vs. Hyundai Industrial Co | Kukdo Chemical vs. Dongil Metal Co | Kukdo Chemical vs. DB Financial Investment | Kukdo Chemical vs. Stic Investments |
| Kyung In vs. ADTechnology CoLtd | Kyung In vs. Korea Plasma Technology | Kyung In vs. Dongil Steel Co | Kyung In vs. Insun Environment New |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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