Correlation Between Kukdong Oil and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Kukdong Oil and Infinitt Healthcare 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 Infinitt Healthcare 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 Infinitt Healthcare Co, you can compare the effects of market volatilities on Kukdong Oil and Infinitt Healthcare 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 Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdong Oil and Infinitt Healthcare.
Diversification Opportunities for Kukdong Oil and Infinitt Healthcare
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kukdong and Infinitt is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kukdong Oil Chemicals and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare 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 Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Kukdong Oil i.e., Kukdong Oil and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Kukdong Oil and Infinitt Healthcare
Assuming the 90 days trading horizon Kukdong Oil Chemicals is expected to generate 1.17 times more return on investment than Infinitt Healthcare. However, Kukdong Oil is 1.17 times more volatile than Infinitt Healthcare Co. It trades about 0.29 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.04 per unit of risk. If you would invest 324,384 in Kukdong Oil Chemicals on October 11, 2024 and sell it today you would earn a total of 25,616 from holding Kukdong Oil Chemicals or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukdong Oil Chemicals vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Kukdong Oil Chemicals |
| Infinitt Healthcare |
Kukdong Oil and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdong Oil and Infinitt Healthcare
The main advantage of trading using opposite Kukdong Oil and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdong Oil position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Kukdong Oil vs. CU Medical Systems | Kukdong Oil vs. Sewoon Medical Co | Kukdong Oil vs. Shinsegae Food | Kukdong Oil vs. Jeju Air Co |
| Infinitt Healthcare vs. Miwon Chemicals Co | Infinitt Healthcare vs. Kukdong Oil Chemicals | Infinitt Healthcare vs. Cuckoo Electronics Co | Infinitt Healthcare vs. Wave Electronics 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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