Correlation Between Kyung-In Synthetic and TSE Co
Can any of the company-specific risk be diversified away by investing in both Kyung-In Synthetic and TSE Co 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 TSE Co 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 TSE Co, you can compare the effects of market volatilities on Kyung-In Synthetic and TSE Co 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 TSE Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung-In Synthetic and TSE Co.
Diversification Opportunities for Kyung-In Synthetic and TSE Co
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kyung-In and TSE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and TSE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSE Co 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 TSE Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSE Co has no effect on the direction of Kyung-In Synthetic i.e., Kyung-In Synthetic and TSE Co go up and down completely randomly.
Pair Corralation between Kyung-In Synthetic and TSE Co
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to under-perform the TSE Co. But the stock apears to be less risky and, when comparing its historical volatility, Kyung In Synthetic Corp is 2.91 times less risky than TSE Co. The stock trades about -0.06 of its potential returns per unit of risk. The TSE Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,947,534 in TSE Co on September 14, 2024 and sell it today you would lose (1,082,534) from holding TSE Co or give up 21.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. TSE Co
Performance |
| Timeline |
| Kyung In Synthetic |
| TSE Co |
Kyung-In Synthetic and TSE Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung-In Synthetic and TSE Co
The main advantage of trading using opposite Kyung-In Synthetic and TSE Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung-In Synthetic position performs unexpectedly, TSE Co 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 TSE Co will offset losses from the drop in TSE Co'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 |
| TSE Co vs. Hansol Chemical Co | TSE Co vs. Kyung In Synthetic Corp | TSE Co vs. LG Chemicals | TSE Co vs. LG Display 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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