Correlation Between Kukil Metal and Orbitech
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Orbitech 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 Orbitech 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 Orbitech Co, you can compare the effects of market volatilities on Kukil Metal and Orbitech 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 Orbitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Orbitech.
Diversification Opportunities for Kukil Metal and Orbitech
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kukil and Orbitech is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Orbitech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbitech 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 Orbitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbitech has no effect on the direction of Kukil Metal i.e., Kukil Metal and Orbitech go up and down completely randomly.
Pair Corralation between Kukil Metal and Orbitech
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the Orbitech. But the stock apears to be less risky and, when comparing its historical volatility, Kukil Metal Co is 1.81 times less risky than Orbitech. The stock trades about -0.23 of its potential returns per unit of risk. The Orbitech Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 248,500 in Orbitech Co on August 24, 2024 and sell it today you would lose (12,500) from holding Orbitech Co or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Orbitech Co
Performance |
| Timeline |
| Kukil Metal |
| Orbitech |
Kukil Metal and Orbitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Orbitech
The main advantage of trading using opposite Kukil Metal and Orbitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Orbitech 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 Orbitech will offset losses from the drop in Orbitech'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 |
| Orbitech vs. Hyosung Advanced Materials | Orbitech vs. Daiyang Metal Co | Orbitech vs. Songwon Industrial Co | Orbitech vs. Daejoo Electronic Materials |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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