Correlation Between Ilji Technology and Kyung In
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Kyung In 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 Ilji Technology and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Ilji Technology and Kyung In 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 Ilji Technology with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Kyung In.
Diversification Opportunities for Ilji Technology and Kyung In
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ilji and Kyung is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology 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 Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Kyung In. 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 Ilji Technology i.e., Ilji Technology and Kyung In go up and down completely randomly.
Pair Corralation between Ilji Technology and Kyung In
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 1.4 times more return on investment than Kyung In. However, Ilji Technology is 1.4 times more volatile than Kyung In Synthetic Corp. It trades about 0.48 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about 0.13 per unit of risk. If you would invest 352,000 in Ilji Technology Co on November 3, 2024 and sell it today you would earn a total of 51,000 from holding Ilji Technology Co or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Ilji Technology |
| Kyung In Synthetic |
Ilji Technology and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Kyung In
The main advantage of trading using opposite Ilji Technology and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Kyung In 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 will offset losses from the drop in Kyung In's long position.| Ilji Technology vs. Daesung Industrial Co | Ilji Technology vs. Seoul Food Industrial | Ilji Technology vs. Mirai Semiconductors Co | Ilji Technology vs. Daejung Chemicals Metals |
| Kyung In vs. Youngsin Metal Industrial | Kyung In vs. Eagon Industrial Co | Kyung In vs. Choil Aluminum | Kyung In vs. Pyung Hwa 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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