Correlation Between Kyung-In Synthetic and Total Soft
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic and Total Soft 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 Total Soft 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 Total Soft Bank, you can compare the effects of market volatilities on Kyung-In Synthetic and Total Soft 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 Total Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and Total Soft.
Diversification Opportunities for Kyung-In Synthetic and Total Soft
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyung-In and Total is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Total Soft Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Soft Bank 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 Total Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Soft Bank has no effect on the direction of Kyung-In Synthetic i.e., Kyung-In Synthetic and Total Soft go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and Total Soft
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the Total Soft. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 5.25 times less risky than Total Soft. The stock trades about -0.07 of its potential returns per unit of risk. The Total Soft Bank is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 562,000 in Total Soft Bank on September 13, 2024 and sell it today you would earn a total of 668,000 from holding Total Soft Bank or generate 118.86% 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. Total Soft Bank
Performance |
| Timeline |
| Kyung In Synthetic |
| Total Soft Bank |
Kyung-In Synthetic and Total Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and Total Soft
The main advantage of trading using opposite Kyung-In Synthetic and Total Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic position performs unexpectedly, Total Soft 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 Total Soft will offset losses from the drop in Total Soft's long position.| Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. SK Hynix | Kyung-In Synthetic vs. POSCO Holdings |
| Total Soft vs. Semyung Electric Machinery | Total Soft vs. Nam Hwa Construction | Total Soft vs. LG Household Healthcare | Total Soft vs. Seohee Construction Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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