Correlation Between Duksan Hi and Kg Chemical
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Kg Chemical 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 Duksan Hi and Kg Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Kg Chemical, you can compare the effects of market volatilities on Duksan Hi and Kg Chemical 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 Duksan Hi with a short position of Kg Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Kg Chemical.
Diversification Opportunities for Duksan Hi and Kg Chemical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and 001390 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Kg Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kg Chemical and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Kg Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kg Chemical has no effect on the direction of Duksan Hi i.e., Duksan Hi and Kg Chemical go up and down completely randomly.
Pair Corralation between Duksan Hi and Kg Chemical
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Kg Chemical. In addition to that, Duksan Hi is 1.25 times more volatile than Kg Chemical. It trades about -0.06 of its total potential returns per unit of risk. Kg Chemical is currently generating about 0.01 per unit of volatility. If you would invest 386,334 in Kg Chemical on October 26, 2024 and sell it today you would lose (3,334) from holding Kg Chemical or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Kg Chemical
Performance |
| Timeline |
| Duksan Hi Metal |
| Kg Chemical |
Duksan Hi and Kg Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Kg Chemical
The main advantage of trading using opposite Duksan Hi and Kg Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Kg Chemical 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 Kg Chemical will offset losses from the drop in Kg Chemical's long position.| Duksan Hi vs. Hannong Chemicals | Duksan Hi vs. SK Chemicals Co | Duksan Hi vs. Dongil Metal Co | Duksan Hi vs. Miwon Chemicals Co |
| Kg Chemical vs. Duksan Hi Metal | Kg Chemical vs. Lee Ku Industrial | Kg Chemical vs. Tamul Multimedia Co | Kg Chemical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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