Correlation Between BIT Computer and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both BIT Computer and KyungIn Electronics 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 BIT Computer and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and KyungIn Electronics Co, you can compare the effects of market volatilities on BIT Computer and KyungIn Electronics 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 BIT Computer with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and KyungIn Electronics.
Diversification Opportunities for BIT Computer and KyungIn Electronics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIT and KyungIn is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics and BIT Computer 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 BIT Computer Co are associated (or correlated) with KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of BIT Computer i.e., BIT Computer and KyungIn Electronics go up and down completely randomly.
Pair Corralation between BIT Computer and KyungIn Electronics
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 1.24 times more return on investment than KyungIn Electronics. However, BIT Computer is 1.24 times more volatile than KyungIn Electronics Co. It trades about 0.09 of its potential returns per unit of risk. KyungIn Electronics Co is currently generating about -0.18 per unit of risk. If you would invest 493,156 in BIT Computer Co on October 13, 2024 and sell it today you would earn a total of 13,844 from holding BIT Computer Co or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| BIT Computer |
| KyungIn Electronics |
BIT Computer and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and KyungIn Electronics
The main advantage of trading using opposite BIT Computer and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, KyungIn Electronics 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| BIT Computer vs. Oscotec | BIT Computer vs. Genexine | BIT Computer vs. Busan Industrial Co | BIT Computer vs. UNISEM Co |
| KyungIn Electronics vs. BIT Computer Co | KyungIn Electronics vs. Okins Electronics Co | KyungIn Electronics vs. Seers Technology | KyungIn Electronics vs. Guyoung Technology 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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