Correlation Between KPX Green and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both KPX Green and Cuckoo Homesys 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 Cuckoo Homesys 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 Cuckoo Homesys Co, you can compare the effects of market volatilities on KPX Green and Cuckoo Homesys 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 Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of KPX Green and Cuckoo Homesys.
Diversification Opportunities for KPX Green and Cuckoo Homesys
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between KPX and Cuckoo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding KPX Green Chemical and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys 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 Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of KPX Green i.e., KPX Green and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between KPX Green and Cuckoo Homesys
Assuming the 90 days trading horizon KPX Green Chemical is expected to generate 5.14 times more return on investment than Cuckoo Homesys. However, KPX Green is 5.14 times more volatile than Cuckoo Homesys Co. It trades about 0.07 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.46 per unit of risk. If you would invest 636,294 in KPX Green Chemical on October 25, 2024 and sell it today you would earn a total of 25,706 from holding KPX Green Chemical or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KPX Green Chemical vs. Cuckoo Homesys Co
Performance |
| Timeline |
| KPX Green Chemical |
| Cuckoo Homesys |
KPX Green and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KPX Green and Cuckoo Homesys
The main advantage of trading using opposite KPX Green and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KPX Green position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.| KPX Green vs. Kbi Metal Co | KPX Green vs. Kukil Metal Co | KPX Green vs. Formetal Co | KPX Green vs. Heungkuk Metaltech CoLtd |
| Cuckoo Homesys vs. PLAYWITH | Cuckoo Homesys vs. Dongnam Chemical Co | Cuckoo Homesys vs. Sangsin Energy Display | Cuckoo Homesys vs. Namhae Chemical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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