Correlation Between Kbi Metal and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Samsung Fire 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 Kbi Metal and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and Samsung Fire Marine, you can compare the effects of market volatilities on Kbi Metal and Samsung Fire 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 Kbi Metal with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Samsung Fire.
Diversification Opportunities for Kbi Metal and Samsung Fire
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kbi and Samsung is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Kbi Metal 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 Kbi Metal Co are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Kbi Metal i.e., Kbi Metal and Samsung Fire go up and down completely randomly.
Pair Corralation between Kbi Metal and Samsung Fire
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 1.91 times more return on investment than Samsung Fire. However, Kbi Metal is 1.91 times more volatile than Samsung Fire Marine. It trades about 0.03 of its potential returns per unit of risk. Samsung Fire Marine is currently generating about 0.06 per unit of risk. If you would invest 161,800 in Kbi Metal Co on September 12, 2024 and sell it today you would earn a total of 25,300 from holding Kbi Metal Co or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Samsung Fire Marine
Performance |
| Timeline |
| Kbi Metal |
| Samsung Fire Marine |
Kbi Metal and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Samsung Fire
The main advantage of trading using opposite Kbi Metal and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.| Kbi Metal vs. Daejung Chemicals Metals | Kbi Metal vs. Dongbang Transport Logistics | Kbi Metal vs. Hankook Furniture Co | Kbi Metal vs. Home Center Holdings |
| Samsung Fire vs. Sangsangin Investment Securities | Samsung Fire vs. Kbi Metal Co | Samsung Fire vs. MetaLabs Co | Samsung Fire vs. Hanjoo Light Metal |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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