Correlation Between INtRON Biotechnology and Kumho Industrial
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Kumho Industrial 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 INtRON Biotechnology and Kumho Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Kumho Industrial Co, you can compare the effects of market volatilities on INtRON Biotechnology and Kumho Industrial 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 INtRON Biotechnology with a short position of Kumho Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Kumho Industrial.
Diversification Opportunities for INtRON Biotechnology and Kumho Industrial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between INtRON and Kumho is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Kumho Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Industrial and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Kumho Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Industrial has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Kumho Industrial go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Kumho Industrial
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 1.37 times more return on investment than Kumho Industrial. However, INtRON Biotechnology is 1.37 times more volatile than Kumho Industrial Co. It trades about -0.02 of its potential returns per unit of risk. Kumho Industrial Co is currently generating about -0.14 per unit of risk. If you would invest 743,208 in iNtRON Biotechnology on October 18, 2024 and sell it today you would lose (161,208) from holding iNtRON Biotechnology or give up 21.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Kumho Industrial Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Kumho Industrial |
INtRON Biotechnology and Kumho Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Kumho Industrial
The main advantage of trading using opposite INtRON Biotechnology and Kumho Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Kumho Industrial 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 Kumho Industrial will offset losses from the drop in Kumho Industrial's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Kumho Industrial vs. TK Chemical | Kumho Industrial vs. Sangsangin Investment Securities | Kumho Industrial vs. NH Investment Securities | Kumho Industrial vs. Kg Chemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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