Correlation Between Kbi Metal and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Myoung Shin 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 Myoung Shin 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 Myoung Shin Industrial, you can compare the effects of market volatilities on Kbi Metal and Myoung Shin 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 Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Myoung Shin.
Diversification Opportunities for Kbi Metal and Myoung Shin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kbi and Myoung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial 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 Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Kbi Metal i.e., Kbi Metal and Myoung Shin go up and down completely randomly.
Pair Corralation between Kbi Metal and Myoung Shin
Assuming the 90 days trading horizon Kbi Metal Co is expected to under-perform the Myoung Shin. But the stock apears to be less risky and, when comparing its historical volatility, Kbi Metal Co is 1.39 times less risky than Myoung Shin. The stock trades about -0.33 of its potential returns per unit of risk. The Myoung Shin Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,176,000 in Myoung Shin Industrial on August 24, 2024 and sell it today you would lose (16,000) from holding Myoung Shin Industrial or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Myoung Shin Industrial
Performance |
| Timeline |
| Kbi Metal |
| Myoung Shin Industrial |
Kbi Metal and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Myoung Shin
The main advantage of trading using opposite Kbi Metal and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Kbi Metal vs. Busan Industrial Co | Kbi Metal vs. Busan Ind | Kbi Metal vs. Mirae Asset Daewoo | Kbi Metal vs. UNISEM Co |
| Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind | Myoung Shin vs. Mirae Asset Daewoo | Myoung Shin vs. UNISEM 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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