Correlation Between Koh Young and MetaLabs
Can any of the company-specific risk be diversified away by investing in both Koh Young and MetaLabs 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 MetaLabs 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 MetaLabs Co, you can compare the effects of market volatilities on Koh Young and MetaLabs 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 MetaLabs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koh Young and MetaLabs.
Diversification Opportunities for Koh Young and MetaLabs
Very good diversification
The 3 months correlation between Koh and MetaLabs is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Koh Young Technology and MetaLabs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetaLabs 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 MetaLabs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetaLabs has no effect on the direction of Koh Young i.e., Koh Young and MetaLabs go up and down completely randomly.
Pair Corralation between Koh Young and MetaLabs
Assuming the 90 days trading horizon Koh Young Technology is expected to generate 2.56 times more return on investment than MetaLabs. However, Koh Young is 2.56 times more volatile than MetaLabs Co. It trades about 0.28 of its potential returns per unit of risk. MetaLabs Co is currently generating about -0.03 per unit of risk. If you would invest 850,000 in Koh Young Technology on November 27, 2024 and sell it today you would earn a total of 1,071,000 from holding Koh Young Technology or generate 126.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koh Young Technology vs. MetaLabs Co
Performance |
| Timeline |
| Koh Young Technology |
| MetaLabs |
Koh Young and MetaLabs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koh Young and MetaLabs
The main advantage of trading using opposite Koh Young and MetaLabs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koh Young position performs unexpectedly, MetaLabs 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 MetaLabs will offset losses from the drop in MetaLabs' long position.The idea behind Koh Young Technology and MetaLabs Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MetaLabs vs. Global Standard Technology | MetaLabs vs. Kyeryong Construction Industrial | MetaLabs vs. Puloon Technology | MetaLabs vs. People Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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