Correlation Between Korea New and Kyobo 3
Can any of the company-specific risk be diversified away by investing in both Korea New and Kyobo 3 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 Korea New and Kyobo 3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Kyobo 3 SPAC, you can compare the effects of market volatilities on Korea New and Kyobo 3 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 Korea New with a short position of Kyobo 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Kyobo 3.
Diversification Opportunities for Korea New and Kyobo 3
Average diversification
The 3 months correlation between Korea and Kyobo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and Kyobo 3 SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyobo 3 SPAC and Korea New 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 Korea New Network are associated (or correlated) with Kyobo 3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyobo 3 SPAC has no effect on the direction of Korea New i.e., Korea New and Kyobo 3 go up and down completely randomly.
Pair Corralation between Korea New and Kyobo 3
Assuming the 90 days trading horizon Korea New is expected to generate 3.2 times less return on investment than Kyobo 3. But when comparing it to its historical volatility, Korea New Network is 3.01 times less risky than Kyobo 3. It trades about 0.05 of its potential returns per unit of risk. Kyobo 3 SPAC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 48,400 in Kyobo 3 SPAC on November 2, 2024 and sell it today you would earn a total of 7,500 from holding Kyobo 3 SPAC or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.97% |
| Values | Daily Returns |
Korea New Network vs. Kyobo 3 SPAC
Performance |
| Timeline |
| Korea New Network |
| Kyobo 3 SPAC |
Korea New and Kyobo 3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Kyobo 3
The main advantage of trading using opposite Korea New and Kyobo 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New position performs unexpectedly, Kyobo 3 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 Kyobo 3 will offset losses from the drop in Kyobo 3's long position.| Korea New vs. JYP Entertainment Corp | Korea New vs. Industrial Bank | Korea New vs. SM Entertainment Co | Korea New vs. Next Entertainment World |
| Kyobo 3 vs. Sewoon Medical Co | Kyobo 3 vs. LG Household Healthcare | Kyobo 3 vs. Infinitt Healthcare Co | Kyobo 3 vs. Woori Technology Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |