Correlation Between Tuksu Engineering and KB Financial
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and KB Financial 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 Tuksu Engineering and KB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuksu Engineering ConstructionLtd and KB Financial Group, you can compare the effects of market volatilities on Tuksu Engineering and KB Financial 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 Tuksu Engineering with a short position of KB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and KB Financial.
Diversification Opportunities for Tuksu Engineering and KB Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuksu and 105560 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and KB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KB Financial Group and Tuksu Engineering 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 Tuksu Engineering ConstructionLtd are associated (or correlated) with KB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KB Financial Group has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and KB Financial go up and down completely randomly.
Pair Corralation between Tuksu Engineering and KB Financial
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to generate 1.51 times more return on investment than KB Financial. However, Tuksu Engineering is 1.51 times more volatile than KB Financial Group. It trades about 0.19 of its potential returns per unit of risk. KB Financial Group is currently generating about 0.1 per unit of risk. If you would invest 637,000 in Tuksu Engineering ConstructionLtd on October 24, 2024 and sell it today you would earn a total of 41,000 from holding Tuksu Engineering ConstructionLtd or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. KB Financial Group
Performance |
| Timeline |
| Tuksu Engineering |
| KB Financial Group |
Tuksu Engineering and KB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and KB Financial
The main advantage of trading using opposite Tuksu Engineering and KB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, KB Financial 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 KB Financial will offset losses from the drop in KB Financial's long position.| Tuksu Engineering vs. Humasis Co | Tuksu Engineering vs. Access Bio | Tuksu Engineering vs. Taewoong Logistics CoLtd | Tuksu Engineering vs. Hana Financial 7 |
| KB Financial vs. Derkwoo Electronics Co | KB Financial vs. Samyoung Electronics Co | KB Financial vs. DAEDUCK ELECTRONICS CoLtd | KB Financial vs. Cuckoo Electronics 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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