Correlation Between Kukdo Chemical and Next Entertainment
Can any of the company-specific risk be diversified away by investing in both Kukdo Chemical and Next Entertainment 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 Next Entertainment 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 Next Entertainment World, you can compare the effects of market volatilities on Kukdo Chemical and Next Entertainment 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 Next Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdo Chemical and Next Entertainment.
Diversification Opportunities for Kukdo Chemical and Next Entertainment
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kukdo and Next is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kukdo Chemical Co and Next Entertainment World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Entertainment World 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 Next Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Entertainment World has no effect on the direction of Kukdo Chemical i.e., Kukdo Chemical and Next Entertainment go up and down completely randomly.
Pair Corralation between Kukdo Chemical and Next Entertainment
Assuming the 90 days trading horizon Kukdo Chemical Co is expected to generate 0.72 times more return on investment than Next Entertainment. However, Kukdo Chemical Co is 1.39 times less risky than Next Entertainment. It trades about -0.02 of its potential returns per unit of risk. Next Entertainment World is currently generating about -0.06 per unit of risk. If you would invest 4,070,501 in Kukdo Chemical Co on January 17, 2025 and sell it today you would lose (1,095,501) from holding Kukdo Chemical Co or give up 26.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdo Chemical Co vs. Next Entertainment World
Performance |
| Timeline |
| Kukdo Chemical |
| Next Entertainment World |
Kukdo Chemical and Next Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdo Chemical and Next Entertainment
The main advantage of trading using opposite Kukdo Chemical and Next Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdo Chemical position performs unexpectedly, Next Entertainment 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 Next Entertainment will offset losses from the drop in Next Entertainment's long position.| Kukdo Chemical vs. Woori Technology | Kukdo Chemical vs. Kukdong Oil Chemicals | Kukdo Chemical vs. Samsung Publishing Co | Kukdo Chemical vs. Guyoung Technology Co |
| Next Entertainment vs. E Investment Development | Next Entertainment vs. NH Investment Securities | Next Entertainment vs. Puloon Technology | Next Entertainment vs. Hwangkum Steel Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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