Correlation Between Kukil Metal and LEADCORP
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and LEADCORP 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 LEADCORP 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 The LEADCORP, you can compare the effects of market volatilities on Kukil Metal and LEADCORP 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 LEADCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and LEADCORP.
Diversification Opportunities for Kukil Metal and LEADCORP
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kukil and LEADCORP is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and The LEADCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEADCORP 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 LEADCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEADCORP has no effect on the direction of Kukil Metal i.e., Kukil Metal and LEADCORP go up and down completely randomly.
Pair Corralation between Kukil Metal and LEADCORP
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 1.5 times more return on investment than LEADCORP. However, Kukil Metal is 1.5 times more volatile than The LEADCORP. It trades about 0.08 of its potential returns per unit of risk. The LEADCORP is currently generating about -0.25 per unit of risk. If you would invest 174,800 in Kukil Metal Co on November 3, 2024 and sell it today you would earn a total of 2,500 from holding Kukil Metal Co or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. The LEADCORP
Performance |
| Timeline |
| Kukil Metal |
| LEADCORP |
Kukil Metal and LEADCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and LEADCORP
The main advantage of trading using opposite Kukil Metal and LEADCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, LEADCORP 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 LEADCORP will offset losses from the drop in LEADCORP's long position.| Kukil Metal vs. KG Eco Technology | Kukil Metal vs. iNtRON Biotechnology | Kukil Metal vs. GS Retail Co | Kukil Metal vs. Ilji Technology Co |
| LEADCORP vs. DONGKUK TED METAL | LEADCORP vs. Dongbang Transport Logistics | LEADCORP vs. Nable Communications | LEADCORP vs. Youngsin Metal Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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