Correlation Between Korea Zinc and IL Science
Can any of the company-specific risk be diversified away by investing in both Korea Zinc and IL Science 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 Zinc and IL Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Zinc and IL Science Co, you can compare the effects of market volatilities on Korea Zinc and IL Science 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 Zinc with a short position of IL Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Zinc and IL Science.
Diversification Opportunities for Korea Zinc and IL Science
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and 307180 is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Korea Zinc and IL Science Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IL Science and Korea Zinc 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 Zinc are associated (or correlated) with IL Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IL Science has no effect on the direction of Korea Zinc i.e., Korea Zinc and IL Science go up and down completely randomly.
Pair Corralation between Korea Zinc and IL Science
Assuming the 90 days trading horizon Korea Zinc is expected to under-perform the IL Science. In addition to that, Korea Zinc is 1.67 times more volatile than IL Science Co. It trades about -0.01 of its total potential returns per unit of risk. IL Science Co is currently generating about 0.01 per unit of volatility. If you would invest 294,500 in IL Science Co on November 27, 2024 and sell it today you would earn a total of 0.00 from holding IL Science Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Korea Zinc vs. IL Science Co
Performance |
| Timeline |
| Korea Zinc |
| IL Science |
Korea Zinc and IL Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Zinc and IL Science
The main advantage of trading using opposite Korea Zinc and IL Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Zinc position performs unexpectedly, IL Science 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 IL Science will offset losses from the drop in IL Science's long position.| Korea Zinc vs. Fine Besteel Co | Korea Zinc vs. Husteel | Korea Zinc vs. Hyundai BNG Steel | Korea Zinc vs. GS Retail Co |
| IL Science vs. GS Engineering Construction | IL Science vs. LG Household Healthcare | IL Science vs. Seoam Machinery Industry | IL Science vs. Dongbang Ship Machinery |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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