Correlation Between KyungIn Electronics and HYBE
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and HYBE 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 HYBE 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 HYBE Co, you can compare the effects of market volatilities on KyungIn Electronics and HYBE 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 HYBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and HYBE.
Diversification Opportunities for KyungIn Electronics and HYBE
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between KyungIn and HYBE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE 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 HYBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and HYBE go up and down completely randomly.
Pair Corralation between KyungIn Electronics and HYBE
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to under-perform the HYBE. But the stock apears to be less risky and, when comparing its historical volatility, KyungIn Electronics Co is 3.19 times less risky than HYBE. The stock trades about -0.06 of its potential returns per unit of risk. The HYBE Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 19,990,000 in HYBE Co on October 24, 2024 and sell it today you would earn a total of 1,810,000 from holding HYBE Co or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. HYBE Co
Performance |
| Timeline |
| KyungIn Electronics |
| HYBE |
KyungIn Electronics and HYBE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and HYBE
The main advantage of trading using opposite KyungIn Electronics and HYBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, HYBE 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 HYBE will offset losses from the drop in HYBE's long position.| KyungIn Electronics vs. Daishin Information Communications | KyungIn Electronics vs. DONGKUK TED METAL | KyungIn Electronics vs. Formetal Co | KyungIn Electronics vs. Kisan Telecom Co |
| HYBE vs. NH Investment Securities | HYBE vs. Coloray International Investment | HYBE vs. Choil Aluminum | HYBE vs. Daejung Chemicals Metals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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