Correlation Between Kukil Metal and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Kukil Metal and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on Kukil Metal and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Cuckoo Homesys.
Diversification Opportunities for Kukil Metal and Cuckoo Homesys
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kukil and Cuckoo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Kukil Metal i.e., Kukil Metal and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Kukil Metal and Cuckoo Homesys
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 1.17 times more return on investment than Cuckoo Homesys. However, Kukil Metal is 1.17 times more volatile than Cuckoo Homesys Co. It trades about 0.04 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.35 per unit of risk. If you would invest 174,800 in Kukil Metal Co on November 1, 2024 and sell it today you would earn a total of 1,000.00 from holding Kukil Metal Co or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Cuckoo Homesys Co
Performance |
| Timeline |
| Kukil Metal |
| Cuckoo Homesys |
Kukil Metal and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Cuckoo Homesys
The main advantage of trading using opposite Kukil Metal and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| Kukil Metal vs. KakaoBank Corp | Kukil Metal vs. Jb Financial | Kukil Metal vs. KG Eco Technology | Kukil Metal vs. Jinro Distillers Co |
| Cuckoo Homesys vs. Daiyang Metal Co | Cuckoo Homesys vs. Kukil Metal Co | Cuckoo Homesys vs. Youngsin Metal Industrial | Cuckoo Homesys vs. KTB Investment Securities |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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