Correlation Between Orbitech and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Orbitech and Kukil Metal 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 Orbitech and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Kukil Metal Co, you can compare the effects of market volatilities on Orbitech and Kukil Metal 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 Orbitech with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Kukil Metal.
Diversification Opportunities for Orbitech and Kukil Metal
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orbitech and Kukil is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Orbitech 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 Orbitech Co are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Orbitech i.e., Orbitech and Kukil Metal go up and down completely randomly.
Pair Corralation between Orbitech and Kukil Metal
Assuming the 90 days trading horizon Orbitech Co is expected to generate 1.86 times more return on investment than Kukil Metal. However, Orbitech is 1.86 times more volatile than Kukil Metal Co. It trades about 0.03 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.33 per unit of risk. If you would invest 241,000 in Orbitech Co on August 28, 2024 and sell it today you would earn a total of 2,000 from holding Orbitech Co or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. Kukil Metal Co
Performance |
| Timeline |
| Orbitech |
| Kukil Metal |
Orbitech and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Kukil Metal
The main advantage of trading using opposite Orbitech and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Orbitech vs. Samsung Electronics Co | Orbitech vs. Samsung Electronics Co | Orbitech vs. Hyundai Motor Co | Orbitech vs. Hyundai Motor |
| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. PJ Metal Co | Kukil Metal vs. Samhyun Steel 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.
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