Correlation Between Kukil Metal and Neungyule Education
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Neungyule Education 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 Neungyule Education 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 Neungyule Education, you can compare the effects of market volatilities on Kukil Metal and Neungyule Education 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 Neungyule Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Neungyule Education.
Diversification Opportunities for Kukil Metal and Neungyule Education
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kukil and Neungyule is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Neungyule Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neungyule Education 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 Neungyule Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neungyule Education has no effect on the direction of Kukil Metal i.e., Kukil Metal and Neungyule Education go up and down completely randomly.
Pair Corralation between Kukil Metal and Neungyule Education
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 0.65 times more return on investment than Neungyule Education. However, Kukil Metal Co is 1.53 times less risky than Neungyule Education. It trades about 0.08 of its potential returns per unit of risk. Neungyule Education is currently generating about -0.06 per unit of risk. If you would invest 170,857 in Kukil Metal Co on October 16, 2024 and sell it today you would earn a total of 3,143 from holding Kukil Metal Co or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Neungyule Education
Performance |
| Timeline |
| Kukil Metal |
| Neungyule Education |
Kukil Metal and Neungyule Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Neungyule Education
The main advantage of trading using opposite Kukil Metal and Neungyule Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Neungyule Education 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 Neungyule Education will offset losses from the drop in Neungyule Education's long position.| Kukil Metal vs. SEOWONINTECHCoLtd | Kukil Metal vs. Daehan Steel | Kukil Metal vs. Fine Besteel Co | Kukil Metal vs. Han Kook Steel |
| Neungyule Education vs. Songwon Industrial Co | Neungyule Education vs. Namhwa Industrial Co | Neungyule Education vs. Samyoung Electronics Co | Neungyule Education vs. UJU Electronics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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