Correlation Between UNISEM and KBSTAR 200TR
Can any of the company-specific risk be diversified away by investing in both UNISEM and KBSTAR 200TR 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 UNISEM and KBSTAR 200TR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and KBSTAR 200TR, you can compare the effects of market volatilities on UNISEM and KBSTAR 200TR 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 UNISEM with a short position of KBSTAR 200TR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and KBSTAR 200TR.
Diversification Opportunities for UNISEM and KBSTAR 200TR
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNISEM and KBSTAR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and KBSTAR 200TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR 200TR and UNISEM 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 UNISEM Co are associated (or correlated) with KBSTAR 200TR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR 200TR has no effect on the direction of UNISEM i.e., UNISEM and KBSTAR 200TR go up and down completely randomly.
Pair Corralation between UNISEM and KBSTAR 200TR
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the KBSTAR 200TR. In addition to that, UNISEM is 2.73 times more volatile than KBSTAR 200TR. It trades about -0.09 of its total potential returns per unit of risk. KBSTAR 200TR is currently generating about -0.06 per unit of volatility. If you would invest 2,038,500 in KBSTAR 200TR on August 24, 2024 and sell it today you would lose (215,500) from holding KBSTAR 200TR or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. KBSTAR 200TR
Performance |
| Timeline |
| UNISEM |
| KBSTAR 200TR |
UNISEM and KBSTAR 200TR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and KBSTAR 200TR
The main advantage of trading using opposite UNISEM and KBSTAR 200TR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, KBSTAR 200TR 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 KBSTAR 200TR will offset losses from the drop in KBSTAR 200TR's long position.| UNISEM vs. Shinsegae Food | UNISEM vs. Seoul Food Industrial | UNISEM vs. HB Technology TD | UNISEM vs. Zaram Technology |
| KBSTAR 200TR vs. Busan Industrial Co | KBSTAR 200TR vs. Busan Ind | KBSTAR 200TR vs. Shinhan WTI Futures | KBSTAR 200TR vs. UNISEM 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |