Correlation Between PLAYWITH and Kepco Plant
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and Kepco Plant 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 PLAYWITH and Kepco Plant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and Kepco Plant S, you can compare the effects of market volatilities on PLAYWITH and Kepco Plant 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 PLAYWITH with a short position of Kepco Plant. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and Kepco Plant.
Diversification Opportunities for PLAYWITH and Kepco Plant
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PLAYWITH and Kepco is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and Kepco Plant S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kepco Plant S and PLAYWITH 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 PLAYWITH are associated (or correlated) with Kepco Plant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kepco Plant S has no effect on the direction of PLAYWITH i.e., PLAYWITH and Kepco Plant go up and down completely randomly.
Pair Corralation between PLAYWITH and Kepco Plant
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the Kepco Plant. In addition to that, PLAYWITH is 2.26 times more volatile than Kepco Plant S. It trades about -0.03 of its total potential returns per unit of risk. Kepco Plant S is currently generating about 0.08 per unit of volatility. If you would invest 3,214,990 in Kepco Plant S on September 4, 2024 and sell it today you would earn a total of 1,645,010 from holding Kepco Plant S or generate 51.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. Kepco Plant S
Performance |
| Timeline |
| PLAYWITH |
| Kepco Plant S |
PLAYWITH and Kepco Plant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and Kepco Plant
The main advantage of trading using opposite PLAYWITH and Kepco Plant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, Kepco Plant 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 Kepco Plant will offset losses from the drop in Kepco Plant's long position.| PLAYWITH vs. Green Cross Medical | PLAYWITH vs. Cheryong Industrial CoLtd | PLAYWITH vs. Sam Yang Foods | PLAYWITH vs. Namhwa Industrial Co |
| Kepco Plant vs. SBI Investment KOREA | Kepco Plant vs. J Steel Co | Kepco Plant vs. Husteel | Kepco Plant vs. Han Kook 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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