Correlation Between AeroSpace Technology and Koh Young
Can any of the company-specific risk be diversified away by investing in both AeroSpace Technology and Koh Young 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 Koh Young 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 Koh Young Technology, you can compare the effects of market volatilities on AeroSpace Technology and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and Koh Young.
Diversification Opportunities for AeroSpace Technology and Koh Young
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AeroSpace and Koh is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of AeroSpace Technology i.e., AeroSpace Technology and Koh Young go up and down completely randomly.
Pair Corralation between AeroSpace Technology and Koh Young
Assuming the 90 days trading horizon AeroSpace Technology of is expected to generate 0.68 times more return on investment than Koh Young. However, AeroSpace Technology of is 1.47 times less risky than Koh Young. It trades about 0.23 of its potential returns per unit of risk. Koh Young Technology is currently generating about 0.11 per unit of risk. If you would invest 50,700 in AeroSpace Technology of on October 19, 2024 and sell it today you would earn a total of 9,200 from holding AeroSpace Technology of or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AeroSpace Technology of vs. Koh Young Technology
Performance |
| Timeline |
| AeroSpace Technology |
| Koh Young Technology |
AeroSpace Technology and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and Koh Young
The main advantage of trading using opposite AeroSpace Technology and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace Technology position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| AeroSpace Technology vs. Kakao Games Corp | AeroSpace Technology vs. Raontech | AeroSpace Technology vs. A Tech Solution Co | AeroSpace Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |