Correlation Between AeroSpace Technology and Korea Air
Can any of the company-specific risk be diversified away by investing in both AeroSpace Technology and Korea Air 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 AeroSpace Technology and Korea Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AeroSpace Technology of and Korea Air Svc, you can compare the effects of market volatilities on AeroSpace Technology and Korea Air 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 AeroSpace Technology with a short position of Korea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and Korea Air.
Diversification Opportunities for AeroSpace Technology and Korea Air
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between AeroSpace and Korea is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of and Korea Air Svc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Air Svc and AeroSpace Technology 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 AeroSpace Technology of are associated (or correlated) with Korea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Air Svc has no effect on the direction of AeroSpace Technology i.e., AeroSpace Technology and Korea Air go up and down completely randomly.
Pair Corralation between AeroSpace Technology and Korea Air
Assuming the 90 days trading horizon AeroSpace Technology of is expected to generate 1.23 times more return on investment than Korea Air. However, AeroSpace Technology is 1.23 times more volatile than Korea Air Svc. It trades about 0.61 of its potential returns per unit of risk. Korea Air Svc is currently generating about -0.14 per unit of risk. If you would invest 50,800 in AeroSpace Technology of on October 23, 2024 and sell it today you would earn a total of 11,000 from holding AeroSpace Technology of or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AeroSpace Technology of vs. Korea Air Svc
Performance |
| Timeline |
| AeroSpace Technology |
| Korea Air Svc |
AeroSpace Technology and Korea Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and Korea Air
The main advantage of trading using opposite AeroSpace Technology and Korea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace Technology position performs unexpectedly, Korea Air 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 Korea Air will offset losses from the drop in Korea Air's long position.| AeroSpace Technology vs. Humasis Co | AeroSpace Technology vs. Access Bio | AeroSpace Technology vs. Taewoong Logistics CoLtd | AeroSpace Technology vs. Hana Financial 7 |
| Korea Air vs. Hanjin Transportation Co | Korea Air vs. AeroSpace Technology of | Korea Air vs. Daewon Media Co | Korea Air vs. SKONEC Entertainment Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |