Correlation Between Kyeryong Construction and Kwang Jin
Can any of the company-specific risk be diversified away by investing in both Kyeryong Construction and Kwang Jin 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 Kyeryong Construction and Kwang Jin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyeryong Construction Industrial and Kwang Jin Ind, you can compare the effects of market volatilities on Kyeryong Construction and Kwang Jin 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 Kyeryong Construction with a short position of Kwang Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyeryong Construction and Kwang Jin.
Diversification Opportunities for Kyeryong Construction and Kwang Jin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kyeryong and Kwang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kyeryong Construction Industri and Kwang Jin Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kwang Jin Ind and Kyeryong Construction 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 Kyeryong Construction Industrial are associated (or correlated) with Kwang Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kwang Jin Ind has no effect on the direction of Kyeryong Construction i.e., Kyeryong Construction and Kwang Jin go up and down completely randomly.
Pair Corralation between Kyeryong Construction and Kwang Jin
Assuming the 90 days trading horizon Kyeryong Construction Industrial is expected to generate 0.72 times more return on investment than Kwang Jin. However, Kyeryong Construction Industrial is 1.39 times less risky than Kwang Jin. It trades about -0.09 of its potential returns per unit of risk. Kwang Jin Ind is currently generating about -0.12 per unit of risk. If you would invest 1,432,000 in Kyeryong Construction Industrial on September 26, 2024 and sell it today you would lose (108,000) from holding Kyeryong Construction Industrial or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyeryong Construction Industri vs. Kwang Jin Ind
Performance |
| Timeline |
| Kyeryong Construction |
| Kwang Jin Ind |
Kyeryong Construction and Kwang Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyeryong Construction and Kwang Jin
The main advantage of trading using opposite Kyeryong Construction and Kwang Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyeryong Construction position performs unexpectedly, Kwang Jin 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 Kwang Jin will offset losses from the drop in Kwang Jin's long position.| Kyeryong Construction vs. AptaBio Therapeutics | Kyeryong Construction vs. Wonbang Tech Co | Kyeryong Construction vs. Busan Industrial Co | Kyeryong Construction vs. Busan Ind |
| Kwang Jin vs. Wonil Special Steel | Kwang Jin vs. Bookook Steel | Kwang Jin vs. Kyeryong Construction Industrial | Kwang Jin vs. Hironic 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |