Correlation Between KyungIn Electronics and Korean Air
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Korean Air 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 KyungIn Electronics and Korean Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and Korean Air Lines, you can compare the effects of market volatilities on KyungIn Electronics and Korean Air 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 KyungIn Electronics with a short position of Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Korean Air.
Diversification Opportunities for KyungIn Electronics and Korean Air
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between KyungIn and Korean is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines and KyungIn Electronics 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 KyungIn Electronics Co are associated (or correlated) with Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Korean Air go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Korean Air
Assuming the 90 days trading horizon KyungIn Electronics is expected to generate 7.31 times less return on investment than Korean Air. But when comparing it to its historical volatility, KyungIn Electronics Co is 1.13 times less risky than Korean Air. It trades about 0.03 of its potential returns per unit of risk. Korean Air Lines is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,435,000 in Korean Air Lines on September 3, 2024 and sell it today you would earn a total of 160,000 from holding Korean Air Lines or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Korean Air Lines
Performance |
| Timeline |
| KyungIn Electronics |
| Korean Air Lines |
KyungIn Electronics and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Korean Air
The main advantage of trading using opposite KyungIn Electronics and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Korean Air vs. INFINITT Healthcare Co | Korean Air vs. Daiyang Metal Co | Korean Air vs. Youngsin Metal Industrial | Korean Air vs. Osang Healthcare Co,Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |