Correlation Between Korea Shipbuilding and Kbi Metal
Can any of the company-specific risk be diversified away by investing in both Korea Shipbuilding and Kbi Metal 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 Korea Shipbuilding and Kbi Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Shipbuilding Offshore and Kbi Metal Co, you can compare the effects of market volatilities on Korea Shipbuilding and Kbi Metal 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 Korea Shipbuilding with a short position of Kbi Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Shipbuilding and Kbi Metal.
Diversification Opportunities for Korea Shipbuilding and Kbi Metal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and Kbi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Korea Shipbuilding Offshore and Kbi Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kbi Metal and Korea Shipbuilding 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 Korea Shipbuilding Offshore are associated (or correlated) with Kbi Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kbi Metal has no effect on the direction of Korea Shipbuilding i.e., Korea Shipbuilding and Kbi Metal go up and down completely randomly.
Pair Corralation between Korea Shipbuilding and Kbi Metal
Assuming the 90 days trading horizon Korea Shipbuilding Offshore is expected to generate 0.72 times more return on investment than Kbi Metal. However, Korea Shipbuilding Offshore is 1.4 times less risky than Kbi Metal. It trades about 0.32 of its potential returns per unit of risk. Kbi Metal Co is currently generating about 0.12 per unit of risk. If you would invest 20,850,000 in Korea Shipbuilding Offshore on October 18, 2024 and sell it today you would earn a total of 3,500,000 from holding Korea Shipbuilding Offshore or generate 16.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Shipbuilding Offshore vs. Kbi Metal Co
Performance |
| Timeline |
| Korea Shipbuilding |
| Kbi Metal |
Korea Shipbuilding and Kbi Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Shipbuilding and Kbi Metal
The main advantage of trading using opposite Korea Shipbuilding and Kbi Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Shipbuilding position performs unexpectedly, Kbi Metal 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 Kbi Metal will offset losses from the drop in Kbi Metal's long position.| Korea Shipbuilding vs. Yura Tech Co | Korea Shipbuilding vs. A Tech Solution Co | Korea Shipbuilding vs. CU Tech Corp | Korea Shipbuilding vs. Amogreentech Co |
| Kbi Metal vs. Haitai Confectionery Foods | Kbi Metal vs. Dongbang Transport Logistics | Kbi Metal vs. Samlip General Foods | Kbi Metal vs. Moonbae Steel |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |