Correlation Between NexturnBioscience and KEPCO Engineering
Can any of the company-specific risk be diversified away by investing in both NexturnBioscience and KEPCO Engineering 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 NexturnBioscience and KEPCO Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexturnBioscience Co and KEPCO Engineering Construction, you can compare the effects of market volatilities on NexturnBioscience and KEPCO Engineering 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 NexturnBioscience with a short position of KEPCO Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexturnBioscience and KEPCO Engineering.
Diversification Opportunities for NexturnBioscience and KEPCO Engineering
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NexturnBioscience and KEPCO is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding NexturnBioscience Co and KEPCO Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEPCO Engineering and NexturnBioscience 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 NexturnBioscience Co are associated (or correlated) with KEPCO Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEPCO Engineering has no effect on the direction of NexturnBioscience i.e., NexturnBioscience and KEPCO Engineering go up and down completely randomly.
Pair Corralation between NexturnBioscience and KEPCO Engineering
Assuming the 90 days trading horizon NexturnBioscience Co is expected to under-perform the KEPCO Engineering. But the stock apears to be less risky and, when comparing its historical volatility, NexturnBioscience Co is 1.0 times less risky than KEPCO Engineering. The stock trades about -0.18 of its potential returns per unit of risk. The KEPCO Engineering Construction is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 6,890,000 in KEPCO Engineering Construction on November 28, 2024 and sell it today you would lose (150,000) from holding KEPCO Engineering Construction or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NexturnBioscience Co vs. KEPCO Engineering Construction
Performance |
| Timeline |
| NexturnBioscience |
| KEPCO Engineering |
NexturnBioscience and KEPCO Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexturnBioscience and KEPCO Engineering
The main advantage of trading using opposite NexturnBioscience and KEPCO Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexturnBioscience position performs unexpectedly, KEPCO Engineering 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 KEPCO Engineering will offset losses from the drop in KEPCO Engineering's long position.| NexturnBioscience vs. Sempio Foods Co | NexturnBioscience vs. DB Financial Investment | NexturnBioscience vs. KTB Investment Securities | NexturnBioscience vs. Haitai Confectionery Foods |
| KEPCO Engineering vs. Samhyun Steel Co | KEPCO Engineering vs. Infinitt Healthcare Co | KEPCO Engineering vs. Young Heung Iron | KEPCO Engineering vs. Hyundai BNG Steel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |