Correlation Between Kyung-In Synthetic and Chin Yang
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic and Chin Yang 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 Chin Yang 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 Chin Yang Chemical, you can compare the effects of market volatilities on Kyung-In Synthetic and Chin Yang 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 Chin Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and Chin Yang.
Diversification Opportunities for Kyung-In Synthetic and Chin Yang
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kyung-In and Chin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Chin Yang Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chin Yang Chemical 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 Chin Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chin Yang Chemical has no effect on the direction of Kyung-In Synthetic i.e., Kyung-In Synthetic and Chin Yang go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and Chin Yang
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the Chin Yang. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 1.5 times less risky than Chin Yang. The stock trades about -0.03 of its potential returns per unit of risk. The Chin Yang Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 318,417 in Chin Yang Chemical on September 14, 2024 and sell it today you would earn a total of 101,583 from holding Chin Yang Chemical or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Chin Yang Chemical
Performance |
| Timeline |
| Kyung In Synthetic |
| Chin Yang Chemical |
Kyung-In Synthetic and Chin Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and Chin Yang
The main advantage of trading using opposite Kyung-In Synthetic and Chin Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic position performs unexpectedly, Chin Yang 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 Chin Yang will offset losses from the drop in Chin Yang's long position.| Kyung-In Synthetic vs. Seoyon Topmetal Co | Kyung-In Synthetic vs. Sung Bo Chemicals | Kyung-In Synthetic vs. Clean Science co | Kyung-In Synthetic vs. Handok Clean Tech |
| Chin Yang vs. Kyung In Synthetic Corp | Chin Yang vs. Nh Investment And | Chin Yang vs. Hannong Chemicals | Chin Yang vs. TK Chemical |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |