Correlation Between Kukil Metal and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on Kukil Metal and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Shinsegae Information.
Diversification Opportunities for Kukil Metal and Shinsegae Information
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kukil and Shinsegae is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Kukil Metal i.e., Kukil Metal and Shinsegae Information go up and down completely randomly.
Pair Corralation between Kukil Metal and Shinsegae Information
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 2.83 times more return on investment than Shinsegae Information. However, Kukil Metal is 2.83 times more volatile than Shinsegae Information Communication. It trades about -0.01 of its potential returns per unit of risk. Shinsegae Information Communication 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Shinsegae Information Communic
Performance |
| Timeline |
| Kukil Metal |
| Shinsegae Information |
Kukil Metal and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Shinsegae Information
The main advantage of trading using opposite Kukil Metal and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information'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 |
| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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