Correlation Between KyungIn Electronics and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Ssangyong Information 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 Ssangyong Information 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 Ssangyong Information Communication, you can compare the effects of market volatilities on KyungIn Electronics and Ssangyong Information 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 Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Ssangyong Information.
Diversification Opportunities for KyungIn Electronics and Ssangyong Information
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KyungIn and Ssangyong is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information 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 Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Ssangyong Information go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Ssangyong Information
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 1.69 times more return on investment than Ssangyong Information. However, KyungIn Electronics is 1.69 times more volatile than Ssangyong Information Communication. It trades about 0.0 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.03 per unit of risk. If you would invest 2,418,832 in KyungIn Electronics Co on September 2, 2024 and sell it today you would lose (358,832) from holding KyungIn Electronics Co or give up 14.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Ssangyong Information Communic
Performance |
| Timeline |
| KyungIn Electronics |
| Ssangyong Information |
KyungIn Electronics and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Ssangyong Information
The main advantage of trading using opposite KyungIn Electronics and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Ssangyong Information vs. DONGKUK TED METAL | Ssangyong Information vs. Korean Reinsurance Co | Ssangyong Information vs. Choil Aluminum | Ssangyong Information vs. Dongbang Transport Logistics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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