Correlation Between Kbi Metal and Wysiwyg Studios
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Wysiwyg Studios 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 Wysiwyg Studios 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 Wysiwyg Studios Co, you can compare the effects of market volatilities on Kbi Metal and Wysiwyg Studios 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 Wysiwyg Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Wysiwyg Studios.
Diversification Opportunities for Kbi Metal and Wysiwyg Studios
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kbi and Wysiwyg is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Wysiwyg Studios Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wysiwyg Studios 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 Wysiwyg Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wysiwyg Studios has no effect on the direction of Kbi Metal i.e., Kbi Metal and Wysiwyg Studios go up and down completely randomly.
Pair Corralation between Kbi Metal and Wysiwyg Studios
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 1.23 times more return on investment than Wysiwyg Studios. However, Kbi Metal is 1.23 times more volatile than Wysiwyg Studios Co. It trades about 0.06 of its potential returns per unit of risk. Wysiwyg Studios Co is currently generating about -0.05 per unit of risk. If you would invest 137,900 in Kbi Metal Co on November 3, 2024 and sell it today you would earn a total of 78,600 from holding Kbi Metal Co or generate 57.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kbi Metal Co vs. Wysiwyg Studios Co
Performance |
| Timeline |
| Kbi Metal |
| Wysiwyg Studios |
Kbi Metal and Wysiwyg Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Wysiwyg Studios
The main advantage of trading using opposite Kbi Metal and Wysiwyg Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Wysiwyg Studios 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 Wysiwyg Studios will offset losses from the drop in Wysiwyg Studios' long position.| Kbi Metal vs. Namhwa Industrial Co | Kbi Metal vs. PJ Metal Co | Kbi Metal vs. Seoul Food Industrial | Kbi Metal vs. SCI Information Service |
| Wysiwyg Studios vs. Ssangyong Information Communication | Wysiwyg Studios vs. Kisan Telecom Co | Wysiwyg Studios vs. ECSTELECOM Co | Wysiwyg Studios vs. Atinum Investment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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