Correlation Between Kyeryong Construction and PH Tech
Can any of the company-specific risk be diversified away by investing in both Kyeryong Construction and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Kyeryong Construction and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyeryong Construction and PH Tech.
Diversification Opportunities for Kyeryong Construction and PH Tech
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kyeryong and 239890 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kyeryong Construction Industri and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Kyeryong Construction i.e., Kyeryong Construction and PH Tech go up and down completely randomly.
Pair Corralation between Kyeryong Construction and PH Tech
Assuming the 90 days trading horizon Kyeryong Construction Industrial is expected to under-perform the PH Tech. But the stock apears to be less risky and, when comparing its historical volatility, Kyeryong Construction Industrial is 2.26 times less risky than PH Tech. The stock trades about -0.02 of its potential returns per unit of risk. The PH Tech Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 765,000 in PH Tech Co on September 30, 2024 and sell it today you would earn a total of 19,000 from holding PH Tech Co or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyeryong Construction Industri vs. PH Tech Co
Performance |
| Timeline |
| Kyeryong Construction |
| PH Tech |
Kyeryong Construction and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyeryong Construction and PH Tech
The main advantage of trading using opposite Kyeryong Construction and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyeryong Construction position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Kyeryong Construction vs. Ssangyong Information Communication | Kyeryong Construction vs. Namhwa Industrial Co | Kyeryong Construction vs. Formetal Co | Kyeryong Construction vs. Seoul Food Industrial |
| PH Tech vs. Tamul Multimedia Co | PH Tech vs. MEDIANA CoLtd | PH Tech vs. SM Entertainment Co | PH Tech vs. Barunson Entertainment Arts |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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