Correlation Between Kyeryong Construction and CU Medical
Can any of the company-specific risk be diversified away by investing in both Kyeryong Construction and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Kyeryong Construction and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyeryong Construction and CU Medical.
Diversification Opportunities for Kyeryong Construction and CU Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kyeryong and 115480 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kyeryong Construction Industri and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Kyeryong Construction i.e., Kyeryong Construction and CU Medical go up and down completely randomly.
Pair Corralation between Kyeryong Construction and CU Medical
Assuming the 90 days trading horizon Kyeryong Construction Industrial is expected to generate 0.82 times more return on investment than CU Medical. However, Kyeryong Construction Industrial is 1.21 times less risky than CU Medical. It trades about 0.02 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.04 per unit of risk. If you would invest 1,245,394 in Kyeryong Construction Industrial on September 19, 2024 and sell it today you would earn a total of 90,606 from holding Kyeryong Construction Industrial or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyeryong Construction Industri vs. CU Medical Systems
Performance |
| Timeline |
| Kyeryong Construction |
| CU Medical Systems |
Kyeryong Construction and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyeryong Construction and CU Medical
The main advantage of trading using opposite Kyeryong Construction and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyeryong Construction position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| Kyeryong Construction vs. Samsung Electronics Co | Kyeryong Construction vs. Samsung Electronics Co | Kyeryong Construction vs. SK Hynix | Kyeryong Construction vs. POSCO Holdings |
| CU Medical vs. Samsung Electronics Co | CU Medical vs. Samsung Electronics Co | CU Medical vs. SK Hynix | CU Medical vs. SK Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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