Correlation Between Kukil Metal and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Wonbang Tech 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 Wonbang Tech 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 Wonbang Tech Co, you can compare the effects of market volatilities on Kukil Metal and Wonbang Tech 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 Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Wonbang Tech.
Diversification Opportunities for Kukil Metal and Wonbang Tech
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kukil and Wonbang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech 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 Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Kukil Metal i.e., Kukil Metal and Wonbang Tech go up and down completely randomly.
Pair Corralation between Kukil Metal and Wonbang Tech
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the Wonbang Tech. But the stock apears to be less risky and, when comparing its historical volatility, Kukil Metal Co is 1.76 times less risky than Wonbang Tech. The stock trades about -0.33 of its potential returns per unit of risk. The Wonbang Tech Co is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,568,000 in Wonbang Tech Co on August 28, 2024 and sell it today you would lose (166,000) from holding Wonbang Tech Co or give up 10.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Wonbang Tech Co
Performance |
| Timeline |
| Kukil Metal |
| Wonbang Tech |
Kukil Metal and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Wonbang Tech
The main advantage of trading using opposite Kukil Metal and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech'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 |
| Wonbang Tech vs. Namhwa Industrial Co | Wonbang Tech vs. Youngsin Metal Industrial | Wonbang Tech vs. Daedong Metals Co | Wonbang Tech vs. Kukil Metal 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets |