Correlation Between Kukil Metal and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Tuksu 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 Kukil Metal and Tuksu Engineering 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 Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Kukil Metal and Tuksu 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 Kukil Metal with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Tuksu Engineering.
Diversification Opportunities for Kukil Metal and Tuksu Engineering
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kukil and Tuksu is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering 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 Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Kukil Metal i.e., Kukil Metal and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Kukil Metal and Tuksu Engineering
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 1.74 times more return on investment than Tuksu Engineering. However, Kukil Metal is 1.74 times more volatile than Tuksu Engineering ConstructionLtd. It trades about 0.0 of its potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about -0.02 per unit of risk. If you would invest 283,355 in Kukil Metal Co on August 27, 2024 and sell it today you would lose (108,355) from holding Kukil Metal Co or give up 38.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Kukil Metal |
| Tuksu Engineering |
Kukil Metal and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Tuksu Engineering
The main advantage of trading using opposite Kukil Metal and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Tuksu 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. PJ Metal Co | Kukil Metal vs. Samhyun Steel Co |
| Tuksu Engineering vs. Kukil Metal Co | Tuksu Engineering vs. DB Insurance Co | Tuksu Engineering vs. Daedong Metals Co | Tuksu Engineering vs. Taegu Broadcasting |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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