Correlation Between Kukdong Oil and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Kukdong Oil and Yujin Robot 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 Kukdong Oil and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukdong Oil Chemicals and Yujin Robot Co, you can compare the effects of market volatilities on Kukdong Oil and Yujin Robot 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 Kukdong Oil with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdong Oil and Yujin Robot.
Diversification Opportunities for Kukdong Oil and Yujin Robot
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kukdong and Yujin is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kukdong Oil Chemicals and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Kukdong Oil 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 Kukdong Oil Chemicals are associated (or correlated) with Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of Kukdong Oil i.e., Kukdong Oil and Yujin Robot go up and down completely randomly.
Pair Corralation between Kukdong Oil and Yujin Robot
Assuming the 90 days trading horizon Kukdong Oil is expected to generate 64.27 times less return on investment than Yujin Robot. But when comparing it to its historical volatility, Kukdong Oil Chemicals is 7.41 times less risky than Yujin Robot. It trades about 0.03 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 604,000 in Yujin Robot Co on October 25, 2024 and sell it today you would earn a total of 197,000 from holding Yujin Robot Co or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kukdong Oil Chemicals vs. Yujin Robot Co
Performance |
| Timeline |
| Kukdong Oil Chemicals |
| Yujin Robot |
Kukdong Oil and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdong Oil and Yujin Robot
The main advantage of trading using opposite Kukdong Oil and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdong Oil position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot's long position.| Kukdong Oil vs. KB Financial Group | Kukdong Oil vs. Shinhan Financial Group | Kukdong Oil vs. Hana Financial | Kukdong Oil vs. Woori Financial Group |
| Yujin Robot vs. Hannong Chemicals | Yujin Robot vs. SK Chemicals Co | Yujin Robot vs. Daejoo Electronic Materials | Yujin Robot vs. Sung Bo Chemicals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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