Correlation Between Kukil Metal and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Shinil 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 Kukil Metal and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukil Metal Co and Shinil Industrial Co, you can compare the effects of market volatilities on Kukil Metal and Shinil 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 Kukil Metal with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Shinil Industrial.
Diversification Opportunities for Kukil Metal and Shinil Industrial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kukil and Shinil is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and Kukil Metal 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 Kukil Metal Co are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of Kukil Metal i.e., Kukil Metal and Shinil Industrial go up and down completely randomly.
Pair Corralation between Kukil Metal and Shinil Industrial
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 1.1 times more return on investment than Shinil Industrial. However, Kukil Metal is 1.1 times more volatile than Shinil Industrial Co. It trades about 0.12 of its potential returns per unit of risk. Shinil Industrial Co is currently generating about 0.03 per unit of risk. If you would invest 170,857 in Kukil Metal Co on October 17, 2024 and sell it today you would earn a total of 4,543 from holding Kukil Metal Co or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Shinil Industrial Co
Performance |
| Timeline |
| Kukil Metal |
| Shinil Industrial |
Kukil Metal and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Shinil Industrial
The main advantage of trading using opposite Kukil Metal and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Shinil 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| Kukil Metal vs. Samsung Life Insurance | Kukil Metal vs. Coloray International Investment | Kukil Metal vs. Atinum Investment Co | Kukil Metal vs. Lotte Non Life Insurance |
| Shinil Industrial vs. Kukil Metal Co | Shinil Industrial vs. Heungkuk Metaltech CoLtd | Shinil Industrial vs. BIT Computer Co | Shinil Industrial vs. DONGKUK TED METAL |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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