Correlation Between Kukil Metal and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco Co, you can compare the effects of market volatilities on Kukil Metal and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Hansol Homedeco.
Diversification Opportunities for Kukil Metal and Hansol Homedeco
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kukil and Hansol is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of Kukil Metal i.e., Kukil Metal and Hansol Homedeco go up and down completely randomly.
Pair Corralation between Kukil Metal and Hansol Homedeco
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the Hansol Homedeco. But the stock apears to be less risky and, when comparing its historical volatility, Kukil Metal Co is 1.06 times less risky than Hansol Homedeco. The stock trades about -0.01 of its potential returns per unit of risk. The Hansol Homedeco Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 65,300 in Hansol Homedeco Co on September 20, 2024 and sell it today you would earn a total of 1,100 from holding Hansol Homedeco Co or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Hansol Homedeco Co
Performance |
| Timeline |
| Kukil Metal |
| Hansol Homedeco |
Kukil Metal and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Hansol Homedeco
The main advantage of trading using opposite Kukil Metal and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| Kukil Metal vs. Eugene Technology CoLtd | Kukil Metal vs. Koh Young Technology | Kukil Metal vs. Kbi Metal Co | Kukil Metal vs. Global Standard Technology |
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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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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