Correlation Between FNSTech and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both FNSTech and Kukil 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 FNSTech and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and Kukil Metal Co, you can compare the effects of market volatilities on FNSTech and Kukil 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 FNSTech with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and Kukil Metal.
Diversification Opportunities for FNSTech and Kukil Metal
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FNSTech and Kukil is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech Co and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and FNSTech 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 FNSTech Co are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of FNSTech i.e., FNSTech and Kukil Metal go up and down completely randomly.
Pair Corralation between FNSTech and Kukil Metal
Assuming the 90 days trading horizon FNSTech Co is expected to generate 4.28 times more return on investment than Kukil Metal. However, FNSTech is 4.28 times more volatile than Kukil Metal Co. It trades about 0.23 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.11 per unit of risk. If you would invest 843,000 in FNSTech Co on November 7, 2024 and sell it today you would earn a total of 179,000 from holding FNSTech Co or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNSTech Co vs. Kukil Metal Co
Performance |
| Timeline |
| FNSTech |
| Kukil Metal |
FNSTech and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and Kukil Metal
The main advantage of trading using opposite FNSTech and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech position performs unexpectedly, Kukil 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| FNSTech vs. Mgame Corp | FNSTech vs. SK Chemicals Co | FNSTech vs. Dongnam Chemical Co | FNSTech vs. Kg Chemical |
| Kukil Metal vs. Mobileleader CoLtd | Kukil Metal vs. Jeju Bank | Kukil Metal vs. FNSTech Co | Kukil Metal vs. Mobile Appliance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |