Correlation Between KyungIn Electronics and Daesung Hi
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Daesung Hi 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 Daesung Hi 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 Daesung Hi Tech Co, you can compare the effects of market volatilities on KyungIn Electronics and Daesung Hi 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 Daesung Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Daesung Hi.
Diversification Opportunities for KyungIn Electronics and Daesung Hi
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between KyungIn and Daesung is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Daesung Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Hi Tech 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 Daesung Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Hi Tech has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Daesung Hi go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Daesung Hi
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 1.09 times more return on investment than Daesung Hi. However, KyungIn Electronics is 1.09 times more volatile than Daesung Hi Tech Co. It trades about 0.01 of its potential returns per unit of risk. Daesung Hi Tech Co is currently generating about -0.07 per unit of risk. If you would invest 2,154,432 in KyungIn Electronics Co on September 1, 2024 and sell it today you would lose (94,432) from holding KyungIn Electronics Co or give up 4.38% 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. Daesung Hi Tech Co
Performance |
| Timeline |
| KyungIn Electronics |
| Daesung Hi Tech |
KyungIn Electronics and Daesung Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Daesung Hi
The main advantage of trading using opposite KyungIn Electronics and Daesung Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Daesung Hi 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 Daesung Hi will offset losses from the drop in Daesung Hi's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. Samsung Electronics Co | Daesung Hi vs. LG Energy Solution | Daesung Hi vs. SK Hynix |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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