Correlation Between Hansol Chemical and Kyung-In Synthetic
Can any of the company-specific risk be diversified away by investing in both Hansol Chemical and Kyung-In Synthetic 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 Hansol Chemical and Kyung-In Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Chemical Co and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Hansol Chemical and Kyung-In Synthetic 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 Hansol Chemical with a short position of Kyung-In Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Chemical and Kyung-In Synthetic.
Diversification Opportunities for Hansol Chemical and Kyung-In Synthetic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hansol and Kyung-In is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Chemical Co and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Hansol Chemical 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 Hansol Chemical Co are associated (or correlated) with Kyung-In Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Hansol Chemical i.e., Hansol Chemical and Kyung-In Synthetic go up and down completely randomly.
Pair Corralation between Hansol Chemical and Kyung-In Synthetic
Assuming the 90 days trading horizon Hansol Chemical Co is expected to under-perform the Kyung-In Synthetic. In addition to that, Hansol Chemical is 1.73 times more volatile than Kyung In Synthetic Corp. It trades about -0.07 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.06 per unit of volatility. If you would invest 367,520 in Kyung In Synthetic Corp on September 14, 2024 and sell it today you would lose (87,520) from holding Kyung In Synthetic Corp or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Chemical Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Hansol Chemical |
| Kyung In Synthetic |
Hansol Chemical and Kyung-In Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Chemical and Kyung-In Synthetic
The main advantage of trading using opposite Hansol Chemical and Kyung-In Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Chemical position performs unexpectedly, Kyung-In Synthetic 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 Kyung-In Synthetic will offset losses from the drop in Kyung-In Synthetic's long position.| Hansol Chemical vs. Shinsegae Food | Hansol Chemical vs. Hyundai Engineering Plastics | Hansol Chemical vs. CKH Food Health | Hansol Chemical vs. PI Advanced Materials |
| Kyung-In Synthetic vs. Seoyon Topmetal Co | Kyung-In Synthetic vs. Sung Bo Chemicals | Kyung-In Synthetic vs. Clean Science co | Kyung-In Synthetic vs. Handok Clean Tech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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