Correlation Between Korea Investment and Kyeryong Construction
Can any of the company-specific risk be diversified away by investing in both Korea Investment and Kyeryong Construction 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 Korea Investment and Kyeryong Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Investment Holdings and Kyeryong Construction Industrial, you can compare the effects of market volatilities on Korea Investment and Kyeryong Construction 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 Korea Investment with a short position of Kyeryong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and Kyeryong Construction.
Diversification Opportunities for Korea Investment and Kyeryong Construction
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Korea and Kyeryong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and Kyeryong Construction Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyeryong Construction and Korea Investment 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 Korea Investment Holdings are associated (or correlated) with Kyeryong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyeryong Construction has no effect on the direction of Korea Investment i.e., Korea Investment and Kyeryong Construction go up and down completely randomly.
Pair Corralation between Korea Investment and Kyeryong Construction
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.94 times more return on investment than Kyeryong Construction. However, Korea Investment Holdings is 1.07 times less risky than Kyeryong Construction. It trades about 0.08 of its potential returns per unit of risk. Kyeryong Construction Industrial is currently generating about -0.02 per unit of risk. If you would invest 3,678,231 in Korea Investment Holdings on December 1, 2024 and sell it today you would earn a total of 1,991,769 from holding Korea Investment Holdings or generate 54.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Investment Holdings vs. Kyeryong Construction Industri
Performance |
| Timeline |
| Korea Investment Holdings |
| Kyeryong Construction |
Korea Investment and Kyeryong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Investment and Kyeryong Construction
The main advantage of trading using opposite Korea Investment and Kyeryong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, Kyeryong Construction 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 Kyeryong Construction will offset losses from the drop in Kyeryong Construction's long position.| Korea Investment vs. Sejong Industrial | Korea Investment vs. Digital Multimedia Technology | Korea Investment vs. Next Entertainment World | Korea Investment vs. T3 Entertainment Co |
| Kyeryong Construction vs. AptaBio Therapeutics | Kyeryong Construction vs. Daewoo SBI SPAC | Kyeryong Construction vs. Dream Security co | Kyeryong Construction 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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