Correlation Between Kyung In and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Kyung In and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Kyung In and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Koryo Credit.
Diversification Opportunities for Kyung In and Koryo Credit
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kyung and Koryo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Kyung In i.e., Kyung In and Koryo Credit go up and down completely randomly.
Pair Corralation between Kyung In and Koryo Credit
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 1.65 times more return on investment than Koryo Credit. However, Kyung In is 1.65 times more volatile than Koryo Credit Information. It trades about -0.09 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.32 per unit of risk. If you would invest 278,500 in Kyung In Synthetic Corp on November 8, 2024 and sell it today you would lose (6,500) from holding Kyung In Synthetic Corp or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Koryo Credit Information
Performance |
| Timeline |
| Kyung In Synthetic |
| Koryo Credit Information |
Kyung In and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Koryo Credit
The main advantage of trading using opposite Kyung In and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Kyung In vs. Iljin Display | Kyung In vs. INNOX Advanced Materials | Kyung In vs. Lake Materials Co | Kyung In vs. LG Display Co |
| Koryo Credit vs. DONGKUK TED METAL | Koryo Credit vs. Shinil Electronics Co | Koryo Credit vs. Shinhan Inverse Copper | Koryo Credit vs. Daiyang Metal 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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