Correlation Between Okins Electronics and Korea Alcohol
Can any of the company-specific risk be diversified away by investing in both Okins Electronics and Korea Alcohol 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 Okins Electronics and Korea Alcohol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Korea Alcohol Industrial, you can compare the effects of market volatilities on Okins Electronics and Korea Alcohol 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 Okins Electronics with a short position of Korea Alcohol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Korea Alcohol.
Diversification Opportunities for Okins Electronics and Korea Alcohol
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Okins and Korea is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Korea Alcohol Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Alcohol Industrial and Okins Electronics 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 Okins Electronics Co are associated (or correlated) with Korea Alcohol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Alcohol Industrial has no effect on the direction of Okins Electronics i.e., Okins Electronics and Korea Alcohol go up and down completely randomly.
Pair Corralation between Okins Electronics and Korea Alcohol
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Korea Alcohol. In addition to that, Okins Electronics is 1.4 times more volatile than Korea Alcohol Industrial. It trades about -0.54 of its total potential returns per unit of risk. Korea Alcohol Industrial is currently generating about -0.13 per unit of volatility. If you would invest 900,000 in Korea Alcohol Industrial on August 29, 2024 and sell it today you would lose (36,000) from holding Korea Alcohol Industrial or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okins Electronics Co vs. Korea Alcohol Industrial
Performance |
| Timeline |
| Okins Electronics |
| Korea Alcohol Industrial |
Okins Electronics and Korea Alcohol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Korea Alcohol
The main advantage of trading using opposite Okins Electronics and Korea Alcohol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics position performs unexpectedly, Korea Alcohol 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 Korea Alcohol will offset losses from the drop in Korea Alcohol's long position.| Okins Electronics vs. Korea Real Estate | Okins Electronics vs. Korea Ratings Co | Okins Electronics vs. IQuest Co | Okins Electronics vs. Wonbang Tech Co |
| Korea Alcohol vs. Sungchang Autotech Co | Korea Alcohol vs. RFTech Co | Korea Alcohol vs. INFINITT Healthcare Co | Korea Alcohol vs. POSCO M TECH 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |