Correlation Between Asiana Airlines and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Kukil Metal 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 Asiana Airlines and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Kukil Metal Co, you can compare the effects of market volatilities on Asiana Airlines and Kukil Metal 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 Asiana Airlines with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Kukil Metal.
Diversification Opportunities for Asiana Airlines and Kukil Metal
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asiana and Kukil is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Kukil Metal go up and down completely randomly.
Pair Corralation between Asiana Airlines and Kukil Metal
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 1.49 times more return on investment than Kukil Metal. However, Asiana Airlines is 1.49 times more volatile than Kukil Metal Co. It trades about 0.09 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.2 per unit of risk. If you would invest 981,000 in Asiana Airlines on September 2, 2024 and sell it today you would earn a total of 93,000 from holding Asiana Airlines or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Kukil Metal Co
Performance |
| Timeline |
| Asiana Airlines |
| Kukil Metal |
Asiana Airlines and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Kukil Metal
The main advantage of trading using opposite Asiana Airlines and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Daewoo SBI SPAC | Asiana Airlines vs. Dream Security co | Asiana Airlines vs. Microfriend |
| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. Jeil Steel Mfg | Kukil Metal vs. Wonil Special Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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