Correlation Between KyungIn Electronics and Leaders Technology
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Leaders Technology 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 Leaders Technology 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 Leaders Technology Investment, you can compare the effects of market volatilities on KyungIn Electronics and Leaders Technology 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 Leaders Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Leaders Technology.
Diversification Opportunities for KyungIn Electronics and Leaders Technology
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KyungIn and Leaders is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Leaders Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaders Technology 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 Leaders Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaders Technology has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Leaders Technology go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Leaders Technology
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.58 times more return on investment than Leaders Technology. However, KyungIn Electronics Co is 1.73 times less risky than Leaders Technology. It trades about 0.0 of its potential returns per unit of risk. Leaders Technology Investment is currently generating about -0.04 per unit of risk. If you would invest 2,339,951 in KyungIn Electronics Co on October 18, 2024 and sell it today you would lose (319,951) from holding KyungIn Electronics Co or give up 13.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.1% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Leaders Technology Investment
Performance |
| Timeline |
| KyungIn Electronics |
| Leaders Technology |
KyungIn Electronics and Leaders Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Leaders Technology
The main advantage of trading using opposite KyungIn Electronics and Leaders Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Leaders Technology 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 Leaders Technology will offset losses from the drop in Leaders Technology's long position.| KyungIn Electronics vs. NICE Information Service | KyungIn Electronics vs. Jeong Moon Information | KyungIn Electronics vs. Nice Information Telecommunication | KyungIn Electronics vs. BGF Retail Co |
| Leaders Technology vs. KyungIn Electronics Co | Leaders Technology vs. Iljin Display | Leaders Technology vs. Cuckoo Electronics Co | Leaders Technology vs. FoodNamoo |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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