Correlation Between Koh Young and LabGenomics
Can any of the company-specific risk be diversified away by investing in both Koh Young and LabGenomics 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 LabGenomics 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 LabGenomics Co, you can compare the effects of market volatilities on Koh Young and LabGenomics 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 LabGenomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koh Young and LabGenomics.
Diversification Opportunities for Koh Young and LabGenomics
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koh and LabGenomics is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Koh Young Technology and LabGenomics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LabGenomics 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 LabGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LabGenomics has no effect on the direction of Koh Young i.e., Koh Young and LabGenomics go up and down completely randomly.
Pair Corralation between Koh Young and LabGenomics
Assuming the 90 days trading horizon Koh Young Technology is expected to under-perform the LabGenomics. But the stock apears to be less risky and, when comparing its historical volatility, Koh Young Technology is 1.18 times less risky than LabGenomics. The stock trades about -0.55 of its potential returns per unit of risk. The LabGenomics Co is currently generating about -0.38 of returns per unit of risk over similar time horizon. If you would invest 345,500 in LabGenomics Co on September 1, 2024 and sell it today you would lose (76,500) from holding LabGenomics Co or give up 22.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Koh Young Technology vs. LabGenomics Co
Performance |
| Timeline |
| Koh Young Technology |
| LabGenomics |
Koh Young and LabGenomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koh Young and LabGenomics
The main advantage of trading using opposite Koh Young and LabGenomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koh Young position performs unexpectedly, LabGenomics 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 LabGenomics will offset losses from the drop in LabGenomics' long position.| Koh Young vs. Dongsin Engineering Construction | Koh Young vs. Doosan Fuel Cell | Koh Young vs. Daishin Balance 1 | Koh Young vs. Total Soft Bank |
| LabGenomics vs. Sam Yang Foods | LabGenomics vs. Home Center Holdings | LabGenomics vs. Kisan Telecom Co | LabGenomics vs. Kakao Games Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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