Correlation Between Kyung In and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Kyung In and Tae Kyung 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 Kyung In and Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung In Synthetic Corp and Tae Kyung Chemical, you can compare the effects of market volatilities on Kyung In and Tae Kyung 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 Kyung In with a short position of Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Tae Kyung.
Diversification Opportunities for Kyung In and Tae Kyung
Average diversification
The 3 months correlation between Kyung and Tae is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical and Kyung In 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 Kyung In Synthetic Corp are associated (or correlated) with Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Kyung In i.e., Kyung In and Tae Kyung go up and down completely randomly.
Pair Corralation between Kyung In and Tae Kyung
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 0.61 times more return on investment than Tae Kyung. However, Kyung In Synthetic Corp is 1.63 times less risky than Tae Kyung. It trades about 0.17 of its potential returns per unit of risk. Tae Kyung Chemical is currently generating about 0.02 per unit of risk. If you would invest 271,500 in Kyung In Synthetic Corp on October 30, 2024 and sell it today you would earn a total of 9,500 from holding Kyung In Synthetic Corp or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Tae Kyung Chemical
Performance |
| Timeline |
| Kyung In Synthetic |
| Tae Kyung Chemical |
Kyung In and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Tae Kyung
The main advantage of trading using opposite Kyung In and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| Kyung In vs. Vissem Electronics Co | Kyung In vs. Sungmoon Electronics Co | Kyung In vs. Korea Electronic Certification | Kyung In vs. Union Materials Corp |
| Tae Kyung vs. Youngchang Chemical Co | Tae Kyung vs. Woori Technology Investment | Tae Kyung vs. LB Investment | Tae Kyung vs. TS Investment Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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