Correlation Between Neungyule Education and CKH Food
Can any of the company-specific risk be diversified away by investing in both Neungyule Education and CKH Food 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 Neungyule Education and CKH Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neungyule Education and CKH Food Health, you can compare the effects of market volatilities on Neungyule Education and CKH Food 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 Neungyule Education with a short position of CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neungyule Education and CKH Food.
Diversification Opportunities for Neungyule Education and CKH Food
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neungyule and CKH is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Neungyule Education and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health and Neungyule Education 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 Neungyule Education are associated (or correlated) with CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Neungyule Education i.e., Neungyule Education and CKH Food go up and down completely randomly.
Pair Corralation between Neungyule Education and CKH Food
Assuming the 90 days trading horizon Neungyule Education is expected to generate 1.47 times more return on investment than CKH Food. However, Neungyule Education is 1.47 times more volatile than CKH Food Health. It trades about 0.09 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.37 per unit of risk. If you would invest 394,000 in Neungyule Education on December 1, 2024 and sell it today you would earn a total of 18,000 from holding Neungyule Education or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neungyule Education vs. CKH Food Health
Performance |
| Timeline |
| Neungyule Education |
| CKH Food Health |
Neungyule Education and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neungyule Education and CKH Food
The main advantage of trading using opposite Neungyule Education and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neungyule Education position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| Neungyule Education vs. PJ Metal Co | Neungyule Education vs. Seoyon Topmetal Co | Neungyule Education vs. Hanjin Transportation Co | Neungyule Education vs. Mirai Semiconductors Co |
| CKH Food vs. Hotel Shilla Co | CKH Food vs. Samsung Publishing Co | CKH Food vs. SBI Investment KOREA | CKH Food vs. SK Chemicals 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 CEOs Directory module to screen CEOs from public companies around the world.
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