Correlation Between Kyung Chang and Silla Sg
Can any of the company-specific risk be diversified away by investing in both Kyung Chang and Silla Sg 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 Kyung Chang and Silla Sg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung Chang Industrial and Silla Sg Co, you can compare the effects of market volatilities on Kyung Chang and Silla Sg 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 Kyung Chang with a short position of Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung Chang and Silla Sg.
Diversification Opportunities for Kyung Chang and Silla Sg
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kyung and Silla is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kyung Chang Industrial and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg and Kyung Chang 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 Kyung Chang Industrial are associated (or correlated) with Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of Kyung Chang i.e., Kyung Chang and Silla Sg go up and down completely randomly.
Pair Corralation between Kyung Chang and Silla Sg
Assuming the 90 days trading horizon Kyung Chang Industrial is expected to under-perform the Silla Sg. In addition to that, Kyung Chang is 1.36 times more volatile than Silla Sg Co. It trades about -0.14 of its total potential returns per unit of risk. Silla Sg Co is currently generating about -0.04 per unit of volatility. If you would invest 612,000 in Silla Sg Co on November 27, 2024 and sell it today you would lose (6,000) from holding Silla Sg Co or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung Chang Industrial vs. Silla Sg Co
Performance |
| Timeline |
| Kyung Chang Industrial |
| Silla Sg |
Kyung Chang and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung Chang and Silla Sg
The main advantage of trading using opposite Kyung Chang and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung Chang position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| Kyung Chang vs. Vitzro Tech Co | Kyung Chang vs. Hanyang Digitech Co | Kyung Chang vs. KMH Hitech Co | Kyung Chang vs. YG Entertainment |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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