Correlation Between KyungIn Electronics and Wonil Special
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on KyungIn Electronics and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Wonil Special.
Diversification Opportunities for KyungIn Electronics and Wonil Special
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KyungIn and Wonil is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Wonil Special go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Wonil Special
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 2.43 times more return on investment than Wonil Special. However, KyungIn Electronics is 2.43 times more volatile than Wonil Special Steel. It trades about 0.0 of its potential returns per unit of risk. Wonil Special Steel is currently generating about -0.04 per unit of risk. If you would invest 2,384,901 in KyungIn Electronics Co on September 3, 2024 and sell it today you would lose (324,901) from holding KyungIn Electronics Co or give up 13.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Wonil Special Steel
Performance |
| Timeline |
| KyungIn Electronics |
| Wonil Special Steel |
KyungIn Electronics and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Wonil Special
The main advantage of trading using opposite KyungIn Electronics and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Wonil Special vs. Samwha Electronics Co | Wonil Special vs. KyungIn Electronics Co | Wonil Special vs. Daou Technology | Wonil Special vs. Cuckoo Electronics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |