Correlation Between Kukil Metal and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on Kukil Metal and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and ABOV Semiconductor.
Diversification Opportunities for Kukil Metal and ABOV Semiconductor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukil and ABOV is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Kukil Metal i.e., Kukil Metal and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Kukil Metal and ABOV Semiconductor
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 0.57 times more return on investment than ABOV Semiconductor. However, Kukil Metal Co is 1.77 times less risky than ABOV Semiconductor. It trades about -0.31 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.36 per unit of risk. If you would invest 196,300 in Kukil Metal Co on September 1, 2024 and sell it today you would lose (20,600) from holding Kukil Metal Co or give up 10.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Kukil Metal |
| ABOV Semiconductor |
Kukil Metal and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and ABOV Semiconductor
The main advantage of trading using opposite Kukil Metal and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. Gyeongnam Steel Co | Kukil Metal vs. Jeil Steel Mfg |
| ABOV Semiconductor vs. Dongsin Engineering Construction | ABOV Semiconductor vs. Doosan Fuel Cell | ABOV Semiconductor vs. Daishin Balance 1 | ABOV Semiconductor vs. Total Soft Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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