Correlation Between Kukdong Oil and Kakao Games
Can any of the company-specific risk be diversified away by investing in both Kukdong Oil and Kakao Games 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 Kakao Games 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 Kakao Games Corp, you can compare the effects of market volatilities on Kukdong Oil and Kakao Games 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 Kakao Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukdong Oil and Kakao Games.
Diversification Opportunities for Kukdong Oil and Kakao Games
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kukdong and Kakao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kukdong Oil Chemicals and Kakao Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakao Games Corp 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 Kakao Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakao Games Corp has no effect on the direction of Kukdong Oil i.e., Kukdong Oil and Kakao Games go up and down completely randomly.
Pair Corralation between Kukdong Oil and Kakao Games
If you would invest 0.00 in Kakao Games Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Kakao Games Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.83% |
| Values | Daily Returns |
Kukdong Oil Chemicals vs. Kakao Games Corp
Performance |
| Timeline |
| Kukdong Oil Chemicals |
| Kakao Games Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Kukdong Oil and Kakao Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukdong Oil and Kakao Games
The main advantage of trading using opposite Kukdong Oil and Kakao Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukdong Oil position performs unexpectedly, Kakao Games 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 Kakao Games will offset losses from the drop in Kakao Games' long position.| Kukdong Oil vs. PJ Metal Co | Kukdong Oil vs. Homecast CoLtd | Kukdong Oil vs. Sungmoon Electronics Co | Kukdong Oil vs. LG Electronics |
| Kakao Games vs. Kukdong Oil Chemicals | Kakao Games vs. Display Tech Co | Kakao Games vs. Hyundai Industrial Co | Kakao Games vs. Korea Alcohol Industrial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |