Correlation Between Shinsung Delta and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta and Kukdong Oil 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 Shinsung Delta and Kukdong Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsung Delta Tech and Kukdong Oil Chemicals, you can compare the effects of market volatilities on Shinsung Delta and Kukdong Oil 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 Shinsung Delta with a short position of Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Kukdong Oil.
Diversification Opportunities for Shinsung Delta and Kukdong Oil
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsung and Kukdong is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals and Shinsung Delta 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 Shinsung Delta Tech are associated (or correlated) with Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Shinsung Delta i.e., Shinsung Delta and Kukdong Oil go up and down completely randomly.
Pair Corralation between Shinsung Delta and Kukdong Oil
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 2.33 times more return on investment than Kukdong Oil. However, Shinsung Delta is 2.33 times more volatile than Kukdong Oil Chemicals. It trades about 0.1 of its potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about 0.02 per unit of risk. If you would invest 1,112,566 in Shinsung Delta Tech on August 29, 2024 and sell it today you would earn a total of 5,637,434 from holding Shinsung Delta Tech or generate 506.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Shinsung Delta Tech vs. Kukdong Oil Chemicals
Performance |
| Timeline |
| Shinsung Delta Tech |
| Kukdong Oil Chemicals |
Shinsung Delta and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Kukdong Oil
The main advantage of trading using opposite Shinsung Delta and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Shinsung Delta vs. Samsung Electronics Co | Shinsung Delta vs. Samsung Electronics Co | Shinsung Delta vs. Hyundai Motor Co | Shinsung Delta vs. Hyundai Motor |
| Kukdong Oil vs. AptaBio Therapeutics | Kukdong Oil vs. Daewoo SBI SPAC | Kukdong Oil vs. Dream Security co | Kukdong Oil vs. Microfriend |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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