Correlation Between KyungIn Electronics and Seronics
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Seronics 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 Seronics 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 Seronics Co, you can compare the effects of market volatilities on KyungIn Electronics and Seronics 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 Seronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Seronics.
Diversification Opportunities for KyungIn Electronics and Seronics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between KyungIn and Seronics is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Seronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seronics 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 Seronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seronics has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Seronics go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Seronics
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.29 times more return on investment than Seronics. However, KyungIn Electronics Co is 3.45 times less risky than Seronics. It trades about 0.03 of its potential returns per unit of risk. Seronics Co is currently generating about -0.21 per unit of risk. If you would invest 2,045,000 in KyungIn Electronics Co on September 3, 2024 and sell it today you would earn a total of 15,000 from holding KyungIn Electronics Co or generate 0.73% 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. Seronics Co
Performance |
| Timeline |
| KyungIn Electronics |
| Seronics |
KyungIn Electronics and Seronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Seronics
The main advantage of trading using opposite KyungIn Electronics and Seronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Seronics 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 Seronics will offset losses from the drop in Seronics' long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Seronics vs. Sangshin Electronics Co | Seronics vs. DAEDUCK ELECTRONICS CoLtd | Seronics vs. Shinil Electronics Co | Seronics vs. KyungIn 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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