Correlation Between Kyung In and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Kyung In and Korea Shipbuilding 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 Korea Shipbuilding 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 Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Kyung In and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Korea Shipbuilding.
Diversification Opportunities for Kyung In and Korea Shipbuilding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyung and Korea is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Kyung In i.e., Kyung In and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Kyung In and Korea Shipbuilding
Assuming the 90 days trading horizon Kyung In is expected to generate 2.48 times less return on investment than Korea Shipbuilding. But when comparing it to its historical volatility, Kyung In Synthetic Corp is 2.08 times less risky than Korea Shipbuilding. It trades about 0.24 of its potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 21,000,000 in Korea Shipbuilding Offshore on October 14, 2024 and sell it today you would earn a total of 3,000,000 from holding Korea Shipbuilding Offshore or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Kyung In Synthetic |
| Korea Shipbuilding |
Kyung In and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Korea Shipbuilding
The main advantage of trading using opposite Kyung In and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Kyung In vs. Bosung Power Technology | Kyung In vs. Seoam Machinery Industry | Kyung In vs. Camus Engineering Construction | Kyung In vs. Hwangkum Steel Technology |
| Korea Shipbuilding vs. Daewon Chemical Co | Korea Shipbuilding vs. Youl Chon Chemical | Korea Shipbuilding vs. Kyung In Synthetic Corp | Korea Shipbuilding vs. Sung Bo Chemicals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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