Correlation Between KyungIn Electronics and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Daishin Balance 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 Daishin Balance 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 Daishin Balance 1, you can compare the effects of market volatilities on KyungIn Electronics and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Daishin Balance.
Diversification Opportunities for KyungIn Electronics and Daishin Balance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between KyungIn and Daishin is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Daishin Balance 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance 1 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance 1 has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Daishin Balance go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Daishin Balance
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 1.37 times more return on investment than Daishin Balance. However, KyungIn Electronics is 1.37 times more volatile than Daishin Balance 1. It trades about 0.19 of its potential returns per unit of risk. Daishin Balance 1 is currently generating about 0.06 per unit of risk. If you would invest 2,000,000 in KyungIn Electronics Co on September 13, 2024 and sell it today you would earn a total of 235,000 from holding KyungIn Electronics Co or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Daishin Balance 1
Performance |
| Timeline |
| KyungIn Electronics |
| Daishin Balance 1 |
KyungIn Electronics and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Daishin Balance
The main advantage of trading using opposite KyungIn Electronics and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| KyungIn Electronics vs. Samsung Electronics Co | KyungIn Electronics vs. Samsung Electronics Co | KyungIn Electronics vs. SK Hynix | KyungIn Electronics vs. POSCO Holdings |
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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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