Correlation Between Kukil Metal and DukSan Neolux
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and DukSan Neolux 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 DukSan Neolux 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 DukSan Neolux CoLtd, you can compare the effects of market volatilities on Kukil Metal and DukSan Neolux 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 DukSan Neolux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and DukSan Neolux.
Diversification Opportunities for Kukil Metal and DukSan Neolux
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kukil and DukSan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and DukSan Neolux CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DukSan Neolux CoLtd 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 DukSan Neolux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DukSan Neolux CoLtd has no effect on the direction of Kukil Metal i.e., Kukil Metal and DukSan Neolux go up and down completely randomly.
Pair Corralation between Kukil Metal and DukSan Neolux
Assuming the 90 days trading horizon Kukil Metal Co is expected to under-perform the DukSan Neolux. But the stock apears to be less risky and, when comparing its historical volatility, Kukil Metal Co is 1.7 times less risky than DukSan Neolux. The stock trades about -0.44 of its potential returns per unit of risk. The DukSan Neolux CoLtd is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 2,765,000 in DukSan Neolux CoLtd on September 4, 2024 and sell it today you would lose (300,000) from holding DukSan Neolux CoLtd or give up 10.85% 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. DukSan Neolux CoLtd
Performance |
| Timeline |
| Kukil Metal |
| DukSan Neolux CoLtd |
Kukil Metal and DukSan Neolux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and DukSan Neolux
The main advantage of trading using opposite Kukil Metal and DukSan Neolux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, DukSan Neolux 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 DukSan Neolux will offset losses from the drop in DukSan Neolux's long position.| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. Gyeongnam Steel Co | Kukil Metal vs. Daedong Steel Co |
| DukSan Neolux vs. Konan Technology | DukSan Neolux vs. Kukil Metal Co | DukSan Neolux vs. Formetal Co | DukSan Neolux vs. QUALITAS SEMICONDUCTOR LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |