Correlation Between Koh Young and RedcapTour
Can any of the company-specific risk be diversified away by investing in both Koh Young and RedcapTour 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 Koh Young and RedcapTour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koh Young Technology and RedcapTour Co, you can compare the effects of market volatilities on Koh Young and RedcapTour 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 Koh Young with a short position of RedcapTour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koh Young and RedcapTour.
Diversification Opportunities for Koh Young and RedcapTour
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koh and RedcapTour is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Koh Young Technology and RedcapTour Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RedcapTour and Koh Young 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 Koh Young Technology are associated (or correlated) with RedcapTour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RedcapTour has no effect on the direction of Koh Young i.e., Koh Young and RedcapTour go up and down completely randomly.
Pair Corralation between Koh Young and RedcapTour
Assuming the 90 days trading horizon Koh Young Technology is expected to generate 6.89 times more return on investment than RedcapTour. However, Koh Young is 6.89 times more volatile than RedcapTour Co. It trades about 0.38 of its potential returns per unit of risk. RedcapTour Co is currently generating about -0.07 per unit of risk. If you would invest 852,000 in Koh Young Technology on October 24, 2024 and sell it today you would earn a total of 606,000 from holding Koh Young Technology or generate 71.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koh Young Technology vs. RedcapTour Co
Performance |
| Timeline |
| Koh Young Technology |
| RedcapTour |
Koh Young and RedcapTour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koh Young and RedcapTour
The main advantage of trading using opposite Koh Young and RedcapTour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koh Young position performs unexpectedly, RedcapTour 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 RedcapTour will offset losses from the drop in RedcapTour's long position.| Koh Young vs. Daishin Balance No8 | Koh Young vs. NAU IB Capital | Koh Young vs. Daishin Balance No | Koh Young vs. Daesung Private Equity |
| RedcapTour vs. Hanwha Chemical Corp | RedcapTour vs. Kukdong Oil Chemicals | RedcapTour vs. Daou Data Corp | RedcapTour vs. DataSolution |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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