Correlation Between KPX Green and Iljin Display
Can any of the company-specific risk be diversified away by investing in both KPX Green and Iljin Display 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 KPX Green and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KPX Green Chemical and Iljin Display, you can compare the effects of market volatilities on KPX Green and Iljin Display 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 KPX Green with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of KPX Green and Iljin Display.
Diversification Opportunities for KPX Green and Iljin Display
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KPX and Iljin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding KPX Green Chemical and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and KPX Green 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 KPX Green Chemical are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of KPX Green i.e., KPX Green and Iljin Display go up and down completely randomly.
Pair Corralation between KPX Green and Iljin Display
Assuming the 90 days trading horizon KPX Green Chemical is expected to generate 2.56 times more return on investment than Iljin Display. However, KPX Green is 2.56 times more volatile than Iljin Display. It trades about 0.18 of its potential returns per unit of risk. Iljin Display is currently generating about 0.05 per unit of risk. If you would invest 474,532 in KPX Green Chemical on October 30, 2024 and sell it today you would earn a total of 175,468 from holding KPX Green Chemical or generate 36.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KPX Green Chemical vs. Iljin Display
Performance |
| Timeline |
| KPX Green Chemical |
| Iljin Display |
KPX Green and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KPX Green and Iljin Display
The main advantage of trading using opposite KPX Green and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KPX Green position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| KPX Green vs. Sam Yang Foods | KPX Green vs. Insung Information Co | KPX Green vs. Hyundai Green Food | KPX Green vs. Seah Steel Corp |
| Iljin Display vs. Daishin Information Communications | Iljin Display vs. Mobileleader CoLtd | Iljin Display vs. Jeong Moon Information | Iljin Display vs. Mgame Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |