Correlation Between Hyunwoo Industrial and KOSES CoLtd
Can any of the company-specific risk be diversified away by investing in both Hyunwoo Industrial and KOSES CoLtd 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 Hyunwoo Industrial and KOSES CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyunwoo Industrial Co and KOSES CoLtd, you can compare the effects of market volatilities on Hyunwoo Industrial and KOSES CoLtd 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 Hyunwoo Industrial with a short position of KOSES CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyunwoo Industrial and KOSES CoLtd.
Diversification Opportunities for Hyunwoo Industrial and KOSES CoLtd
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hyunwoo and KOSES is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hyunwoo Industrial Co and KOSES CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOSES CoLtd and Hyunwoo Industrial 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 Hyunwoo Industrial Co are associated (or correlated) with KOSES CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOSES CoLtd has no effect on the direction of Hyunwoo Industrial i.e., Hyunwoo Industrial and KOSES CoLtd go up and down completely randomly.
Pair Corralation between Hyunwoo Industrial and KOSES CoLtd
Assuming the 90 days trading horizon Hyunwoo Industrial Co is expected to under-perform the KOSES CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Hyunwoo Industrial Co is 1.96 times less risky than KOSES CoLtd. The stock trades about -0.1 of its potential returns per unit of risk. The KOSES CoLtd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,354,000 in KOSES CoLtd on September 12, 2024 and sell it today you would lose (656,000) from holding KOSES CoLtd or give up 48.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Hyunwoo Industrial Co vs. KOSES CoLtd
Performance |
| Timeline |
| Hyunwoo Industrial |
| KOSES CoLtd |
Hyunwoo Industrial and KOSES CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyunwoo Industrial and KOSES CoLtd
The main advantage of trading using opposite Hyunwoo Industrial and KOSES CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyunwoo Industrial position performs unexpectedly, KOSES CoLtd 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 KOSES CoLtd will offset losses from the drop in KOSES CoLtd's long position.| Hyunwoo Industrial vs. SK Hynix | Hyunwoo Industrial vs. People Technology | Hyunwoo Industrial vs. Hana Materials | Hyunwoo Industrial vs. SIMMTECH Co |
| KOSES CoLtd vs. Hyunwoo Industrial Co | KOSES CoLtd vs. Adaptive Plasma Technology | KOSES CoLtd vs. AeroSpace Technology of | KOSES CoLtd vs. Cots Technology Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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