Correlation Between KyungIn Electronics and Okins Electronics
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Okins Electronics 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 Okins Electronics 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 Okins Electronics Co, you can compare the effects of market volatilities on KyungIn Electronics and Okins Electronics 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 Okins Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Okins Electronics.
Diversification Opportunities for KyungIn Electronics and Okins Electronics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KyungIn and Okins is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Okins Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okins Electronics 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 Okins Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okins Electronics has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Okins Electronics go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Okins Electronics
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.71 times more return on investment than Okins Electronics. However, KyungIn Electronics Co is 1.41 times less risky than Okins Electronics. It trades about 0.01 of its potential returns per unit of risk. Okins Electronics Co is currently generating about -0.54 per unit of risk. If you would invest 2,085,000 in KyungIn Electronics Co on August 28, 2024 and sell it today you would earn a total of 5,000 from holding KyungIn Electronics Co or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Okins Electronics Co
Performance |
| Timeline |
| KyungIn Electronics |
| Okins Electronics |
KyungIn Electronics and Okins Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Okins Electronics
The main advantage of trading using opposite KyungIn Electronics and Okins Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Okins Electronics 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 Okins Electronics will offset losses from the drop in Okins Electronics' long position.| KyungIn Electronics vs. FOODWELL Co | KyungIn Electronics vs. Organic Special Pet | KyungIn Electronics vs. CJ Seafood Corp | KyungIn Electronics vs. CJ Seafood Corp |
| Okins Electronics vs. Korea Real Estate | Okins Electronics vs. Korea Ratings Co | Okins Electronics vs. IQuest Co | Okins Electronics vs. Wonbang Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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