Correlation Between Nice Information and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Nice Information 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 Nice Information and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and KyungIn Electronics Co, you can compare the effects of market volatilities on Nice Information 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 Nice Information with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and KyungIn Electronics.
Diversification Opportunities for Nice Information and KyungIn Electronics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nice and KyungIn is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics and Nice 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 Nice Information Telecommunication 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 Nice Information i.e., Nice Information and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Nice Information and KyungIn Electronics
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to under-perform the KyungIn Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Nice Information Telecommunication is 2.04 times less risky than KyungIn Electronics. The stock trades about -0.05 of its potential returns per unit of risk. The KyungIn Electronics Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,354,010 in KyungIn Electronics Co on October 18, 2024 and sell it today you would lose (334,010) from holding KyungIn Electronics Co or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. KyungIn Electronics Co
Performance |
| Timeline |
| Nice Information Tel |
| KyungIn Electronics |
Nice Information and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and KyungIn Electronics
The main advantage of trading using opposite Nice Information and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information 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.| Nice Information vs. Soulbrain Holdings Co | Nice Information vs. NICE Total Cash | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV Co |
| KyungIn Electronics vs. NICE Information Service | KyungIn Electronics vs. Jeong Moon Information | KyungIn Electronics vs. Nice Information Telecommunication | KyungIn Electronics vs. BGF Retail 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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