Correlation Between Kbi Metal and DoubleU Games

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Can any of the company-specific risk be diversified away by investing in both Kbi Metal and DoubleU Games 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 DoubleU Games 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 DoubleU Games Co, you can compare the effects of market volatilities on Kbi Metal and DoubleU Games 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 DoubleU Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and DoubleU Games.

Diversification Opportunities for Kbi Metal and DoubleU Games

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Kbi and DoubleU is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and DoubleU Games Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleU Games 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 DoubleU Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleU Games has no effect on the direction of Kbi Metal i.e., Kbi Metal and DoubleU Games go up and down completely randomly.

Pair Corralation between Kbi Metal and DoubleU Games

Assuming the 90 days trading horizon Kbi Metal Co is expected to under-perform the DoubleU Games. In addition to that, Kbi Metal is 3.34 times more volatile than DoubleU Games Co. It trades about -0.17 of its total potential returns per unit of risk. DoubleU Games Co is currently generating about 0.4 per unit of volatility. If you would invest  4,715,000  in DoubleU Games Co on September 13, 2024 and sell it today you would earn a total of  635,000  from holding DoubleU Games Co or generate 13.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kbi Metal Co  vs.  DoubleU Games Co

 Performance 
       Timeline  
Kbi Metal 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kbi Metal Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
DoubleU Games 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in DoubleU Games Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, DoubleU Games may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kbi Metal and DoubleU Games Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kbi Metal and DoubleU Games

The main advantage of trading using opposite Kbi Metal and DoubleU Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, DoubleU Games 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 DoubleU Games will offset losses from the drop in DoubleU Games' long position.
The idea behind Kbi Metal Co and DoubleU Games Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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