Correlation Between Kukdo Chemical and Atec
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical and Atec 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 Atec 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 Atec Co, you can compare the effects of market volatilities on Kukdo Chemical and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and Atec.
Diversification Opportunities for Kukdo Chemical and Atec
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kukdo and Atec is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical Co and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Kukdo Chemical i.e., Kukdo Chemical and Atec go up and down completely randomly.
Pair Corralation between Kukdo Chemical and Atec
Assuming the 90 days trading horizon Kukdo Chemical is expected to generate 1.4 times less return on investment than Atec. But when comparing it to its historical volatility, Kukdo Chemical Co is 1.25 times less risky than Atec. It trades about 0.31 of its potential returns per unit of risk. Atec Co is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,580,000 in Atec Co on November 28, 2024 and sell it today you would earn a total of 535,000 from holding Atec Co or generate 20.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdo Chemical Co vs. Atec Co
Performance |
| Timeline |
| Kukdo Chemical |
| Atec |
Kukdo Chemical and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and Atec
The main advantage of trading using opposite Kukdo Chemical and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Kukdo Chemical vs. KEPCO Engineering Construction | Kukdo Chemical vs. Inzi Display CoLtd | Kukdo Chemical vs. LG Display Co | Kukdo Chemical vs. Display Tech Co |
| Atec vs. PJ Electronics Co | Atec vs. Cube Entertainment | Atec vs. Netmarble Games Corp | Atec vs. Pan Entertainment Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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