Correlation Between KyungIn Electronics and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and DAEDUCK 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 DAEDUCK 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 DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on KyungIn Electronics and DAEDUCK 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and DAEDUCK ELECTRONICS.
Diversification Opportunities for KyungIn Electronics and DAEDUCK ELECTRONICS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KyungIn and DAEDUCK is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between KyungIn Electronics and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon KyungIn Electronics is expected to generate 4.58 times less return on investment than DAEDUCK ELECTRONICS. But when comparing it to its historical volatility, KyungIn Electronics Co is 1.41 times less risky than DAEDUCK ELECTRONICS. It trades about 0.02 of its potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 798,000 in DAEDUCK ELECTRONICS CoLtd on August 27, 2024 and sell it today you would earn a total of 11,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| KyungIn Electronics |
| DAEDUCK ELECTRONICS CoLtd |
KyungIn Electronics and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and DAEDUCK ELECTRONICS
The main advantage of trading using opposite KyungIn Electronics and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, DAEDUCK 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| DAEDUCK ELECTRONICS vs. Cheryong Industrial CoLtd | DAEDUCK ELECTRONICS vs. Seoul Food Industrial | DAEDUCK ELECTRONICS vs. BGF Retail Co | DAEDUCK ELECTRONICS vs. KyungIn Electronics 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |