Correlation Between Kukil Metal and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Youngsin Metal 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 Youngsin Metal 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 Youngsin Metal Industrial, you can compare the effects of market volatilities on Kukil Metal and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Youngsin Metal.
Diversification Opportunities for Kukil Metal and Youngsin Metal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukil and Youngsin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Kukil Metal i.e., Kukil Metal and Youngsin Metal go up and down completely randomly.
Pair Corralation between Kukil Metal and Youngsin Metal
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 2.61 times more return on investment than Youngsin Metal. However, Kukil Metal is 2.61 times more volatile than Youngsin Metal Industrial. It trades about -0.01 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.07 per unit of risk. If you would invest 293,650 in Kukil Metal Co on August 31, 2024 and sell it today you would lose (117,950) from holding Kukil Metal Co or give up 40.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Kukil Metal |
| Youngsin Metal Industrial |
Kukil Metal and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Youngsin Metal
The main advantage of trading using opposite Kukil Metal and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Kukil Metal vs. INFINITT Healthcare Co | Kukil Metal vs. CKH Food Health | Kukil Metal vs. Asiana Airlines | Kukil Metal vs. POSCO M TECH Co |
| Youngsin Metal vs. Korea New Network | Youngsin Metal vs. ICD Co | Youngsin Metal vs. DYPNF CoLtd | Youngsin Metal vs. Busan Industrial 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |