Correlation Between Duksan Hi and Kbi Metal
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Kbi Metal 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 Kbi Metal 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 Kbi Metal Co, you can compare the effects of market volatilities on Duksan Hi and Kbi Metal 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 Kbi Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Kbi Metal.
Diversification Opportunities for Duksan Hi and Kbi Metal
Almost no diversification
The 3 months correlation between Duksan and Kbi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Kbi Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kbi Metal 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 Kbi Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kbi Metal has no effect on the direction of Duksan Hi i.e., Duksan Hi and Kbi Metal go up and down completely randomly.
Pair Corralation between Duksan Hi and Kbi Metal
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Kbi Metal. But the stock apears to be less risky and, when comparing its historical volatility, Duksan Hi Metal is 1.97 times less risky than Kbi Metal. The stock trades about -0.19 of its potential returns per unit of risk. The Kbi Metal Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 324,000 in Kbi Metal Co on September 1, 2024 and sell it today you would lose (127,000) from holding Kbi Metal Co or give up 39.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Kbi Metal Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Kbi Metal |
Duksan Hi and Kbi Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Kbi Metal
The main advantage of trading using opposite Duksan Hi and Kbi Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Kbi Metal 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 Kbi Metal will offset losses from the drop in Kbi Metal's long position.| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. PJ Metal Co | Duksan Hi vs. Dongbang Transport Logistics | Duksan Hi vs. Nasmedia Co |
| Kbi Metal vs. LG Display | Kbi Metal vs. Hyundai Motor Co | Kbi Metal vs. Hyundai Motor Co | Kbi Metal vs. Adaptive Plasma Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |