Correlation Between Kyung-In Synthetic and Hanil Chemical
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic and Hanil Chemical 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 Synthetic and Hanil Chemical 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 Hanil Chemical Ind, you can compare the effects of market volatilities on Kyung-In Synthetic and Hanil Chemical 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 Synthetic with a short position of Hanil Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and Hanil Chemical.
Diversification Opportunities for Kyung-In Synthetic and Hanil Chemical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kyung-In and Hanil is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Hanil Chemical Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Chemical Ind and Kyung-In Synthetic 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 Hanil Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Chemical Ind has no effect on the direction of Kyung-In Synthetic i.e., Kyung-In Synthetic and Hanil Chemical go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and Hanil Chemical
Assuming the 90 days trading horizon Kyung-In Synthetic is expected to generate 28.41 times less return on investment than Hanil Chemical. But when comparing it to its historical volatility, Kyung In Synthetic Corp is 1.37 times less risky than Hanil Chemical. It trades about 0.0 of its potential returns per unit of risk. Hanil Chemical Ind is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,092,000 in Hanil Chemical Ind on September 14, 2024 and sell it today you would earn a total of 57,000 from holding Hanil Chemical Ind or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Hanil Chemical Ind
Performance |
| Timeline |
| Kyung In Synthetic |
| Hanil Chemical Ind |
Kyung-In Synthetic and Hanil Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and Hanil Chemical
The main advantage of trading using opposite Kyung-In Synthetic and Hanil Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic position performs unexpectedly, Hanil Chemical 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 Hanil Chemical will offset losses from the drop in Hanil Chemical's long position.| Kyung-In Synthetic vs. Seoyon Topmetal Co | Kyung-In Synthetic vs. Sung Bo Chemicals | Kyung-In Synthetic vs. Clean Science co | Kyung-In Synthetic vs. Handok Clean Tech |
| Hanil Chemical vs. Polaris Office Corp | Hanil Chemical vs. Samhyun Steel Co | Hanil Chemical vs. Wonil Special Steel | Hanil Chemical vs. Innowireless Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |