Correlation Between KyungIn Electronics and DRB Industrial
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and DRB Industrial 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 DRB Industrial 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 DRB Industrial Co, you can compare the effects of market volatilities on KyungIn Electronics and DRB Industrial 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 DRB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and DRB Industrial.
Diversification Opportunities for KyungIn Electronics and DRB Industrial
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KyungIn and DRB is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and DRB Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DRB Industrial 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 DRB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DRB Industrial has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and DRB Industrial go up and down completely randomly.
Pair Corralation between KyungIn Electronics and DRB Industrial
Assuming the 90 days trading horizon KyungIn Electronics is expected to generate 12.36 times less return on investment than DRB Industrial. But when comparing it to its historical volatility, KyungIn Electronics Co is 1.05 times less risky than DRB Industrial. It trades about 0.0 of its potential returns per unit of risk. DRB Industrial Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 608,268 in DRB Industrial Co on November 7, 2024 and sell it today you would earn a total of 85,732 from holding DRB Industrial Co or generate 14.09% 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. DRB Industrial Co
Performance |
| Timeline |
| KyungIn Electronics |
| DRB Industrial |
KyungIn Electronics and DRB Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and DRB Industrial
The main advantage of trading using opposite KyungIn Electronics and DRB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, DRB Industrial 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 DRB Industrial will offset losses from the drop in DRB Industrial's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| DRB Industrial vs. AptaBio Therapeutics | DRB Industrial vs. Daewoo SBI SPAC | DRB Industrial vs. Dream Security co | DRB Industrial vs. Microfriend |
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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |