Correlation Between Kukil Metal and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Kukil Metal and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Inzi Display.
Diversification Opportunities for Kukil Metal and Inzi Display
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukil and Inzi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Kukil Metal i.e., Kukil Metal and Inzi Display go up and down completely randomly.
Pair Corralation between Kukil Metal and Inzi Display
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 1.24 times more return on investment than Inzi Display. However, Kukil Metal is 1.24 times more volatile than Inzi Display CoLtd. It trades about 0.0 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.0 per unit of risk. If you would invest 267,461 in Kukil Metal Co on November 7, 2024 and sell it today you would lose (96,161) from holding Kukil Metal Co or give up 35.95% 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. Inzi Display CoLtd
Performance |
| Timeline |
| Kukil Metal |
| Inzi Display CoLtd |
Kukil Metal and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Inzi Display
The main advantage of trading using opposite Kukil Metal and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Kukil Metal vs. Woori Technology Investment | Kukil Metal vs. DSC Investment | Kukil Metal vs. Nice Information Telecommunication | Kukil Metal vs. Mobileleader CoLtd |
| Inzi Display vs. Genie Music | Inzi Display vs. Pan Entertainment Co | Inzi Display vs. Miwon Chemicals Co | Inzi Display vs. SK Chemicals 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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