Correlation Between Kukil Metal and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and MEDIANA CoLtd 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 MEDIANA CoLtd 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 MEDIANA CoLtd, you can compare the effects of market volatilities on Kukil Metal and MEDIANA CoLtd 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 MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and MEDIANA CoLtd.
Diversification Opportunities for Kukil Metal and MEDIANA CoLtd
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kukil and MEDIANA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA 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 MEDIANA CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIANA CoLtd has no effect on the direction of Kukil Metal i.e., Kukil Metal and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between Kukil Metal and MEDIANA CoLtd
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the MEDIANA CoLtd. In addition to that, Kukil Metal is 1.32 times more volatile than MEDIANA CoLtd. It trades about -0.01 of its total potential returns per unit of risk. MEDIANA CoLtd is currently generating about 0.02 per unit of volatility. If you would invest 487,614 in MEDIANA CoLtd on August 31, 2024 and sell it today you would earn a total of 23,386 from holding MEDIANA CoLtd or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. MEDIANA CoLtd
Performance |
| Timeline |
| Kukil Metal |
| MEDIANA CoLtd |
Kukil Metal and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and MEDIANA CoLtd
The main advantage of trading using opposite Kukil Metal and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, MEDIANA CoLtd 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 MEDIANA CoLtd will offset losses from the drop in MEDIANA CoLtd'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 |
| MEDIANA CoLtd vs. AptaBio Therapeutics | MEDIANA CoLtd vs. KT Hitel | MEDIANA CoLtd vs. SillaJen | MEDIANA CoLtd vs. Cytogen |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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