Correlation Between Kyung In and BooKook Steel
Can any of the company-specific risk be diversified away by investing in both Kyung In and BooKook Steel 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 BooKook Steel 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 BooKook Steel Co, you can compare the effects of market volatilities on Kyung In and BooKook Steel 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 BooKook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and BooKook Steel.
Diversification Opportunities for Kyung In and BooKook Steel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kyung and BooKook is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and BooKook Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BooKook Steel 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 BooKook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BooKook Steel has no effect on the direction of Kyung In i.e., Kyung In and BooKook Steel go up and down completely randomly.
Pair Corralation between Kyung In and BooKook Steel
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the BooKook Steel. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 1.48 times less risky than BooKook Steel. The stock trades about -0.04 of its potential returns per unit of risk. The BooKook Steel Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 341,132 in BooKook Steel Co on November 7, 2024 and sell it today you would lose (96,632) from holding BooKook Steel Co or give up 28.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. BooKook Steel Co
Performance |
| Timeline |
| Kyung In Synthetic |
| BooKook Steel |
Kyung In and BooKook Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and BooKook Steel
The main advantage of trading using opposite Kyung In and BooKook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, BooKook Steel 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 BooKook Steel will offset losses from the drop in BooKook Steel's long position.| Kyung In vs. AptaBio Therapeutics | Kyung In vs. Daewoo SBI SPAC | Kyung In vs. Dream Security co | Kyung In vs. Microfriend |
| BooKook Steel vs. Clean Science co | BooKook Steel vs. Lotte Fine Chemical | BooKook Steel vs. Kbi Metal Co | BooKook Steel vs. Hanil Chemical Ind |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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