Correlation Between Kbi Metal and Korea Air
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Korea Air 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 Korea Air 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 Korea Air Svc, you can compare the effects of market volatilities on Kbi Metal and Korea Air 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 Korea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Korea Air.
Diversification Opportunities for Kbi Metal and Korea Air
Good diversification
The 3 months correlation between Kbi and Korea is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Korea Air Svc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Air Svc 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 Korea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Air Svc has no effect on the direction of Kbi Metal i.e., Kbi Metal and Korea Air go up and down completely randomly.
Pair Corralation between Kbi Metal and Korea Air
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 2.38 times more return on investment than Korea Air. However, Kbi Metal is 2.38 times more volatile than Korea Air Svc. It trades about 0.26 of its potential returns per unit of risk. Korea Air Svc is currently generating about -0.08 per unit of risk. If you would invest 199,000 in Kbi Metal Co on October 25, 2024 and sell it today you would earn a total of 34,000 from holding Kbi Metal Co or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Korea Air Svc
Performance |
| Timeline |
| Kbi Metal |
| Korea Air Svc |
Kbi Metal and Korea Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Korea Air
The main advantage of trading using opposite Kbi Metal and Korea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Korea Air 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 Korea Air will offset losses from the drop in Korea Air's long position.| Kbi Metal vs. PH Tech Co | Kbi Metal vs. V One Tech Co | Kbi Metal vs. Ssangyong Materials Corp | Kbi Metal vs. LAKE MATERIALS LTD |
| Korea Air vs. SAMG Entertainment Co | Korea Air vs. SM Entertainment Co | Korea Air vs. Kbi Metal Co | Korea Air vs. T3 Entertainment Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |