Correlation Between SEOWONINTECHCoLtd and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOWONINTECHCoLtd and Kukil Metal Co, you can compare the effects of market volatilities on SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOWONINTECHCoLtd and Kukil Metal.
Diversification Opportunities for SEOWONINTECHCoLtd and Kukil Metal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEOWONINTECHCoLtd and Kukil is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SEOWONINTECHCoLtd and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd i.e., SEOWONINTECHCoLtd and Kukil Metal go up and down completely randomly.
Pair Corralation between SEOWONINTECHCoLtd and Kukil Metal
Assuming the 90 days trading horizon SEOWONINTECHCoLtd is expected to generate 0.33 times more return on investment than Kukil Metal. However, SEOWONINTECHCoLtd is 2.99 times less risky than Kukil Metal. It trades about 0.03 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.06 per unit of risk. If you would invest 500,131 in SEOWONINTECHCoLtd on October 16, 2024 and sell it today you would earn a total of 34,869 from holding SEOWONINTECHCoLtd or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOWONINTECHCoLtd vs. Kukil Metal Co
Performance |
| Timeline |
| SEOWONINTECHCoLtd |
| Kukil Metal |
SEOWONINTECHCoLtd and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOWONINTECHCoLtd and Kukil Metal
The main advantage of trading using opposite SEOWONINTECHCoLtd and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOWONINTECHCoLtd 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.| SEOWONINTECHCoLtd vs. Samlip General Foods | SEOWONINTECHCoLtd vs. Daishin Information Communications | SEOWONINTECHCoLtd vs. Moadata Co | SEOWONINTECHCoLtd vs. Insung Information Co |
| Kukil Metal vs. SEOWONINTECHCoLtd | Kukil Metal vs. Daehan Steel | Kukil Metal vs. Fine Besteel Co | Kukil Metal vs. Han Kook 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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