Correlation Between AeroSpace Technology and Kwang Jin
Can any of the company-specific risk be diversified away by investing in both AeroSpace Technology and Kwang Jin 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 Kwang Jin 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 Kwang Jin Ind, you can compare the effects of market volatilities on AeroSpace Technology and Kwang Jin 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 Kwang Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and Kwang Jin.
Diversification Opportunities for AeroSpace Technology and Kwang Jin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AeroSpace and Kwang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of and Kwang Jin Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kwang Jin Ind 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 Kwang Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kwang Jin Ind has no effect on the direction of AeroSpace Technology i.e., AeroSpace Technology and Kwang Jin go up and down completely randomly.
Pair Corralation between AeroSpace Technology and Kwang Jin
Assuming the 90 days trading horizon AeroSpace Technology of is expected to under-perform the Kwang Jin. In addition to that, AeroSpace Technology is 2.33 times more volatile than Kwang Jin Ind. It trades about -0.04 of its total potential returns per unit of risk. Kwang Jin Ind is currently generating about -0.07 per unit of volatility. If you would invest 485,000 in Kwang Jin Ind on November 7, 2024 and sell it today you would lose (293,900) from holding Kwang Jin Ind or give up 60.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.29% |
| Values | Daily Returns |
AeroSpace Technology of vs. Kwang Jin Ind
Performance |
| Timeline |
| AeroSpace Technology |
| Kwang Jin Ind |
AeroSpace Technology and Kwang Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and Kwang Jin
The main advantage of trading using opposite AeroSpace Technology and Kwang Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace Technology position performs unexpectedly, Kwang Jin 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 Kwang Jin will offset losses from the drop in Kwang Jin's long position.| AeroSpace Technology vs. Daou Technology | AeroSpace Technology vs. KEPCO Engineering Construction | AeroSpace Technology vs. Dongbang Ship Machinery | AeroSpace Technology vs. Hwangkum Steel Technology |
| Kwang Jin vs. Keum Kang Steel | Kwang Jin vs. Tplex Co | Kwang Jin vs. PJ Metal Co | Kwang Jin vs. Samhyun Steel 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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