Correlation Between Myoung Shin and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Myoung Shin and KTB Investment 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 Myoung Shin and KTB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and KTB Investment Securities, you can compare the effects of market volatilities on Myoung Shin and KTB Investment 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 Myoung Shin with a short position of KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and KTB Investment.
Diversification Opportunities for Myoung Shin and KTB Investment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Myoung and KTB is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities and Myoung Shin 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 Myoung Shin Industrial are associated (or correlated) with KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Myoung Shin i.e., Myoung Shin and KTB Investment go up and down completely randomly.
Pair Corralation between Myoung Shin and KTB Investment
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to generate 0.42 times more return on investment than KTB Investment. However, Myoung Shin Industrial is 2.4 times less risky than KTB Investment. It trades about 0.15 of its potential returns per unit of risk. KTB Investment Securities is currently generating about -0.05 per unit of risk. If you would invest 1,077,000 in Myoung Shin Industrial on October 22, 2024 and sell it today you would earn a total of 55,000 from holding Myoung Shin Industrial or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myoung Shin Industrial vs. KTB Investment Securities
Performance |
| Timeline |
| Myoung Shin Industrial |
| KTB Investment Securities |
Myoung Shin and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and KTB Investment
The main advantage of trading using opposite Myoung Shin and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Myoung Shin vs. Asiana Airlines | Myoung Shin vs. Korea Investment Holdings | Myoung Shin vs. Woori Technology Investment | Myoung Shin vs. Worldex Industry Trading |
| KTB Investment vs. Husteel | KTB Investment vs. Hanil Iron Steel | KTB Investment vs. Jeil Steel Mfg | KTB Investment vs. Bookook 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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