Correlation Between Shinsegae Information and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Kukdong Oil 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 Shinsegae Information and Kukdong Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Kukdong Oil Chemicals, you can compare the effects of market volatilities on Shinsegae Information and Kukdong Oil 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 Shinsegae Information with a short position of Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Kukdong Oil.
Diversification Opportunities for Shinsegae Information and Kukdong Oil
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinsegae and Kukdong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals and Shinsegae 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 Shinsegae Information Communication are associated (or correlated) with Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Kukdong Oil go up and down completely randomly.
Pair Corralation between Shinsegae Information and Kukdong Oil
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Kukdong Oil. In addition to that, Shinsegae Information is 2.23 times more volatile than Kukdong Oil Chemicals. It trades about -0.22 of its total potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about -0.14 per unit of volatility. If you would invest 371,000 in Kukdong Oil Chemicals on August 28, 2024 and sell it today you would lose (8,500) from holding Kukdong Oil Chemicals or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| Shinsegae Information |
| Kukdong Oil Chemicals |
Shinsegae Information and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Kukdong Oil
The main advantage of trading using opposite Shinsegae Information and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| Kukdong Oil vs. AptaBio Therapeutics | Kukdong Oil vs. Daewoo SBI SPAC | Kukdong Oil vs. Dream Security co | Kukdong Oil 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |