Correlation Between Korea Refractories and Kakaopay Corp
Can any of the company-specific risk be diversified away by investing in both Korea Refractories and Kakaopay Corp 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 Refractories and Kakaopay Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Refractories Co and kakaopay Corp, you can compare the effects of market volatilities on Korea Refractories and Kakaopay Corp 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 Refractories with a short position of Kakaopay Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Refractories and Kakaopay Corp.
Diversification Opportunities for Korea Refractories and Kakaopay Corp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and Kakaopay is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Korea Refractories Co and kakaopay Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on kakaopay Corp and Korea Refractories 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 Refractories Co are associated (or correlated) with Kakaopay Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of kakaopay Corp has no effect on the direction of Korea Refractories i.e., Korea Refractories and Kakaopay Corp go up and down completely randomly.
Pair Corralation between Korea Refractories and Kakaopay Corp
If you would invest 2,710,000 in kakaopay Corp on November 4, 2024 and sell it today you would lose (10,000) from holding kakaopay Corp or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Korea Refractories Co vs. kakaopay Corp
Performance |
| Timeline |
| Korea Refractories |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| kakaopay Corp |
Korea Refractories and Kakaopay Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Refractories and Kakaopay Corp
The main advantage of trading using opposite Korea Refractories and Kakaopay Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Refractories position performs unexpectedly, Kakaopay Corp 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 Kakaopay Corp will offset losses from the drop in Kakaopay Corp's long position.| Korea Refractories vs. Daehan Steel | Korea Refractories vs. PJ Metal Co | Korea Refractories vs. Wonil Special Steel | Korea Refractories vs. Insun Environment New |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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