Correlation Between Kyung-In Synthetic and Hansol Chemical
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic and Hansol 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 Hansol 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 Hansol Chemical Co, you can compare the effects of market volatilities on Kyung-In Synthetic and Hansol 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 Hansol Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and Hansol Chemical.
Diversification Opportunities for Kyung-In Synthetic and Hansol Chemical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kyung-In and Hansol is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Hansol Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemical 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 Hansol Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemical has no effect on the direction of Kyung-In Synthetic i.e., Kyung-In Synthetic and Hansol Chemical go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and Hansol Chemical
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 0.58 times more return on investment than Hansol Chemical. However, Kyung In Synthetic Corp is 1.73 times less risky than Hansol Chemical. It trades about -0.06 of its potential returns per unit of risk. Hansol Chemical Co is currently generating about -0.07 per unit of risk. If you would invest 367,520 in Kyung In Synthetic Corp on September 14, 2024 and sell it today you would lose (87,520) from holding Kyung In Synthetic Corp or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Hansol Chemical Co
Performance |
| Timeline |
| Kyung In Synthetic |
| Hansol Chemical |
Kyung-In Synthetic and Hansol Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and Hansol Chemical
The main advantage of trading using opposite Kyung-In Synthetic and Hansol Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic position performs unexpectedly, Hansol 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 Hansol Chemical will offset losses from the drop in Hansol 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 |
| Hansol Chemical vs. Shinsegae Food | Hansol Chemical vs. Hyundai Engineering Plastics | Hansol Chemical vs. CKH Food Health | Hansol Chemical vs. PI Advanced Materials |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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