Correlation Between Kukil Metal and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Shinsung Delta 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 Shinsung Delta 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 Shinsung Delta Tech, you can compare the effects of market volatilities on Kukil Metal and Shinsung Delta 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 Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Shinsung Delta.
Diversification Opportunities for Kukil Metal and Shinsung Delta
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kukil and Shinsung is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta 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 Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of Kukil Metal i.e., Kukil Metal and Shinsung Delta go up and down completely randomly.
Pair Corralation between Kukil Metal and Shinsung Delta
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 0.37 times more return on investment than Shinsung Delta. However, Kukil Metal Co is 2.74 times less risky than Shinsung Delta. It trades about -0.02 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about -0.34 per unit of risk. If you would invest 177,300 in Kukil Metal Co on November 29, 2024 and sell it today you would lose (1,100) from holding Kukil Metal Co or give up 0.62% 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. Shinsung Delta Tech
Performance |
| Timeline |
| Kukil Metal |
| Shinsung Delta Tech |
Kukil Metal and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Shinsung Delta
The main advantage of trading using opposite Kukil Metal and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| Kukil Metal vs. Hana Materials | Kukil Metal vs. LS Materials | Kukil Metal vs. Hanil Chemical Ind | Kukil Metal vs. SK Chemicals Co |
| Shinsung Delta vs. MEDIANA CoLtd | Shinsung Delta vs. Daejung Chemicals Metals | Shinsung Delta vs. LEENO Industrial | Shinsung Delta vs. PJ 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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