Correlation Between Kyung In and Polaris Office
Can any of the company-specific risk be diversified away by investing in both Kyung In and Polaris Office 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 Polaris Office 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 Polaris Office Corp, you can compare the effects of market volatilities on Kyung In and Polaris Office 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 Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Polaris Office.
Diversification Opportunities for Kyung In and Polaris Office
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyung and Polaris is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp 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 Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of Kyung In i.e., Kyung In and Polaris Office go up and down completely randomly.
Pair Corralation between Kyung In and Polaris Office
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 0.3 times more return on investment than Polaris Office. However, Kyung In Synthetic Corp is 3.35 times less risky than Polaris Office. It trades about 0.24 of its potential returns per unit of risk. Polaris Office Corp is currently generating about 0.05 per unit of risk. If you would invest 274,455 in Kyung In Synthetic Corp on October 13, 2024 and sell it today you would earn a total of 16,045 from holding Kyung In Synthetic Corp or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Polaris Office Corp
Performance |
| Timeline |
| Kyung In Synthetic |
| Polaris Office Corp |
Kyung In and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Polaris Office
The main advantage of trading using opposite Kyung In and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office'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 |
| Polaris Office vs. Youngbo Chemical Co | Polaris Office vs. Digital Power Communications | Polaris Office vs. Namhae Chemical | Polaris Office vs. Kyung In Synthetic Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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