Correlation Between Kyung In and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Kyung In and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on Kyung In and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Stic Investments.
Diversification Opportunities for Kyung In and Stic Investments
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyung and Stic is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Kyung In i.e., Kyung In and Stic Investments go up and down completely randomly.
Pair Corralation between Kyung In and Stic Investments
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the Stic Investments. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 1.36 times less risky than Stic Investments. The stock trades about -0.04 of its potential returns per unit of risk. The Stic Investments is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 798,000 in Stic Investments on October 14, 2024 and sell it today you would earn a total of 56,000 from holding Stic Investments or generate 7.02% 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. Stic Investments
Performance |
| Timeline |
| Kyung In Synthetic |
| Stic Investments |
Kyung In and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Stic Investments
The main advantage of trading using opposite Kyung In and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Kyung In vs. ENF Technology Co | Kyung In vs. Seoul Electronics Telecom | Kyung In vs. Vissem Electronics Co | Kyung In vs. Korea Electronic Certification |
| Stic Investments vs. Kyung In Synthetic Corp | Stic Investments vs. KPX Green Chemical | Stic Investments vs. Dongnam Chemical Co | Stic Investments 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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