Correlation Between KT Submarine and Yooshin Engineering
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Yooshin Engineering 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 KT Submarine and Yooshin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Submarine Co and Yooshin Engineering, you can compare the effects of market volatilities on KT Submarine and Yooshin Engineering 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 KT Submarine with a short position of Yooshin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Yooshin Engineering.
Diversification Opportunities for KT Submarine and Yooshin Engineering
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 060370 and Yooshin is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Co and Yooshin Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yooshin Engineering and KT Submarine 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 KT Submarine Co are associated (or correlated) with Yooshin Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yooshin Engineering has no effect on the direction of KT Submarine i.e., KT Submarine and Yooshin Engineering go up and down completely randomly.
Pair Corralation between KT Submarine and Yooshin Engineering
Assuming the 90 days trading horizon KT Submarine Co is expected to under-perform the Yooshin Engineering. But the stock apears to be less risky and, when comparing its historical volatility, KT Submarine Co is 1.65 times less risky than Yooshin Engineering. The stock trades about -0.62 of its potential returns per unit of risk. The Yooshin Engineering is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,230,000 in Yooshin Engineering on August 24, 2024 and sell it today you would earn a total of 315,000 from holding Yooshin Engineering or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Co vs. Yooshin Engineering
Performance |
| Timeline |
| KT Submarine |
| Yooshin Engineering |
KT Submarine and Yooshin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Yooshin Engineering
The main advantage of trading using opposite KT Submarine and Yooshin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Yooshin Engineering 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 Yooshin Engineering will offset losses from the drop in Yooshin Engineering's long position.| KT Submarine vs. ABOV Semiconductor Co | KT Submarine vs. Samlip General Foods | KT Submarine vs. Koryo Credit Information | KT Submarine vs. BNK Financial Group |
| Yooshin Engineering vs. Shinhan Inverse Silver | Yooshin Engineering vs. Sempio Foods Co | Yooshin Engineering vs. Hansol Homedeco Co | Yooshin Engineering vs. Hyundai Home Shopping |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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