Correlation Between Kyung Chang and SV Investment
Can any of the company-specific risk be diversified away by investing in both Kyung Chang and SV Investment 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 SV Investment 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 SV Investment, you can compare the effects of market volatilities on Kyung Chang and SV Investment 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 SV Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung Chang and SV Investment.
Diversification Opportunities for Kyung Chang and SV Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kyung and 289080 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kyung Chang Industrial and SV Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SV Investment 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 SV Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SV Investment has no effect on the direction of Kyung Chang i.e., Kyung Chang and SV Investment go up and down completely randomly.
Pair Corralation between Kyung Chang and SV Investment
Assuming the 90 days trading horizon Kyung Chang is expected to generate 5.0 times less return on investment than SV Investment. In addition to that, Kyung Chang is 1.62 times more volatile than SV Investment. It trades about 0.01 of its total potential returns per unit of risk. SV Investment is currently generating about 0.08 per unit of volatility. If you would invest 133,300 in SV Investment on October 14, 2024 and sell it today you would earn a total of 2,900 from holding SV Investment or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung Chang Industrial vs. SV Investment
Performance |
| Timeline |
| Kyung Chang Industrial |
| SV Investment |
Kyung Chang and SV Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung Chang and SV Investment
The main advantage of trading using opposite Kyung Chang and SV Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung Chang position performs unexpectedly, SV Investment 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 SV Investment will offset losses from the drop in SV Investment's long position.| Kyung Chang vs. Nh Investment And | Kyung Chang vs. Korea Investment Holdings | Kyung Chang vs. NH Investment Securities | Kyung Chang vs. SeAH Besteel Corp |
| SV Investment vs. Hanmi Semiconductor Co | SV Investment vs. Fine Besteel Co | SV Investment vs. Han Kook Steel | SV Investment vs. ABOV Semiconductor 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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