Correlation Between Keum Kang and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Keum Kang and Koryo Credit 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 Keum Kang and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keum Kang Steel and Koryo Credit Information, you can compare the effects of market volatilities on Keum Kang and Koryo Credit 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 Keum Kang with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keum Kang and Koryo Credit.
Diversification Opportunities for Keum Kang and Koryo Credit
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keum and Koryo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Keum Kang Steel and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and Keum Kang 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 Keum Kang Steel are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Keum Kang i.e., Keum Kang and Koryo Credit go up and down completely randomly.
Pair Corralation between Keum Kang and Koryo Credit
Assuming the 90 days trading horizon Keum Kang Steel is expected to under-perform the Koryo Credit. In addition to that, Keum Kang is 2.71 times more volatile than Koryo Credit Information. It trades about -0.12 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about 0.24 per unit of volatility. If you would invest 970,000 in Koryo Credit Information on September 1, 2024 and sell it today you would earn a total of 61,000 from holding Koryo Credit Information or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keum Kang Steel vs. Koryo Credit Information
Performance |
| Timeline |
| Keum Kang Steel |
| Koryo Credit Information |
Keum Kang and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keum Kang and Koryo Credit
The main advantage of trading using opposite Keum Kang and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keum Kang position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Keum Kang vs. LG Chemicals | Keum Kang vs. POSCO Holdings | Keum Kang vs. Hanwha Solutions | Keum Kang vs. Hyundai Steel |
| Koryo Credit vs. Hanwha InvestmentSecurities Co | Koryo Credit vs. Hyundai Home Shopping | Koryo Credit vs. SBI Investment KOREA | Koryo Credit vs. Cuckoo Homesys 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |