Correlation Between Korea Information and Kyung In
Can any of the company-specific risk be diversified away by investing in both Korea Information and Kyung In 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 Korea Information and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Korea Information and Kyung In 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 Korea Information with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Kyung In.
Diversification Opportunities for Korea Information and Kyung In
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Korea and Kyung is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Korea Information 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 Korea Information Communications are associated (or correlated) with Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Korea Information i.e., Korea Information and Kyung In go up and down completely randomly.
Pair Corralation between Korea Information and Kyung In
Assuming the 90 days trading horizon Korea Information Communications is expected to generate 0.56 times more return on investment than Kyung In. However, Korea Information Communications is 1.79 times less risky than Kyung In. It trades about 0.0 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.12 per unit of risk. If you would invest 820,000 in Korea Information Communications on August 30, 2024 and sell it today you would lose (1,000.00) from holding Korea Information Communications or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Communicatio vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Korea Information |
| Kyung In Synthetic |
Korea Information and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Kyung In
The main advantage of trading using opposite Korea Information and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Korea Information vs. Daou Data Corp | Korea Information vs. Busan Industrial Co | Korea Information vs. Busan Ind | Korea Information vs. Shinhan WTI Futures |
| Kyung In vs. AptaBio Therapeutics | Kyung In vs. Daewoo SBI SPAC | Kyung In vs. Dream Security co | Kyung In vs. Microfriend |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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