Correlation Between Kukil Metal and CU Medical
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Kukil Metal and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and CU Medical.
Diversification Opportunities for Kukil Metal and CU Medical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kukil and 115480 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Kukil Metal i.e., Kukil Metal and CU Medical go up and down completely randomly.
Pair Corralation between Kukil Metal and CU Medical
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 0.8 times more return on investment than CU Medical. However, Kukil Metal Co is 1.25 times less risky than CU Medical. It trades about -0.33 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.4 per unit of risk. If you would invest 196,500 in Kukil Metal Co on August 28, 2024 and sell it today you would lose (21,000) from holding Kukil Metal Co or give up 10.69% 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. CU Medical Systems
Performance |
| Timeline |
| Kukil Metal |
| CU Medical Systems |
Kukil Metal and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and CU Medical
The main advantage of trading using opposite Kukil Metal and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical'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 |
| CU Medical vs. Nice Information Telecommunication | CU Medical vs. Daishin Information Communications | CU Medical vs. Ssangyong Information Communication | CU Medical vs. Inzi Display CoLtd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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