Correlation Between Kbi Metal and Jin Air
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Jin 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 Jin 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 Jin Air Co, you can compare the effects of market volatilities on Kbi Metal and Jin 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Jin Air.
Diversification Opportunities for Kbi Metal and Jin Air
Very good diversification
The 3 months correlation between Kbi and Jin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Kbi Metal i.e., Kbi Metal and Jin Air go up and down completely randomly.
Pair Corralation between Kbi Metal and Jin Air
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 2.09 times more return on investment than Jin Air. However, Kbi Metal is 2.09 times more volatile than Jin Air Co. It trades about 0.04 of its potential returns per unit of risk. Jin Air Co is currently generating about -0.01 per unit of risk. If you would invest 140,500 in Kbi Metal Co on August 29, 2024 and sell it today you would earn a total of 81,000 from holding Kbi Metal Co or generate 57.65% 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. Jin Air Co
Performance |
| Timeline |
| Kbi Metal |
| Jin Air |
Kbi Metal and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Jin Air
The main advantage of trading using opposite Kbi Metal and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Jin 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 Jin Air will offset losses from the drop in Jin Air'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 |
| Jin Air vs. Busan Industrial Co | Jin Air vs. Busan Ind | Jin Air vs. Mirae Asset Daewoo | Jin Air 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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