Correlation Between KOSES CoLtd and Namuga
Can any of the company-specific risk be diversified away by investing in both KOSES CoLtd and Namuga 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 KOSES CoLtd and Namuga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOSES CoLtd and Namuga Co, you can compare the effects of market volatilities on KOSES CoLtd and Namuga 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 KOSES CoLtd with a short position of Namuga. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOSES CoLtd and Namuga.
Diversification Opportunities for KOSES CoLtd and Namuga
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KOSES and Namuga is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding KOSES CoLtd and Namuga Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namuga and KOSES CoLtd 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 KOSES CoLtd are associated (or correlated) with Namuga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namuga has no effect on the direction of KOSES CoLtd i.e., KOSES CoLtd and Namuga go up and down completely randomly.
Pair Corralation between KOSES CoLtd and Namuga
Assuming the 90 days trading horizon KOSES CoLtd is expected to under-perform the Namuga. In addition to that, KOSES CoLtd is 1.19 times more volatile than Namuga Co. It trades about -0.35 of its total potential returns per unit of risk. Namuga Co is currently generating about 0.08 per unit of volatility. If you would invest 1,226,000 in Namuga Co on September 1, 2024 and sell it today you would earn a total of 44,000 from holding Namuga Co or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOSES CoLtd vs. Namuga Co
Performance |
| Timeline |
| KOSES CoLtd |
| Namuga |
KOSES CoLtd and Namuga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOSES CoLtd and Namuga
The main advantage of trading using opposite KOSES CoLtd and Namuga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOSES CoLtd position performs unexpectedly, Namuga 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 Namuga will offset losses from the drop in Namuga's long position.| KOSES CoLtd vs. Youngbo Chemical Co | KOSES CoLtd vs. KEPCO Engineering Construction | KOSES CoLtd vs. Woorim Machinery Co | KOSES CoLtd vs. Miwon Chemical |
| Namuga vs. Dongsin Engineering Construction | Namuga vs. Doosan Fuel Cell | Namuga vs. Daishin Balance 1 | Namuga vs. Total Soft Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |