Correlation Between SS TECH and Kukdo Chemical
Can any of the company-specific risk be diversified away by investing in both SS TECH and Kukdo Chemical 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 SS TECH and Kukdo Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and Kukdo Chemical Co, you can compare the effects of market volatilities on SS TECH and Kukdo Chemical 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 SS TECH with a short position of Kukdo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and Kukdo Chemical.
Diversification Opportunities for SS TECH and Kukdo Chemical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 101490 and Kukdo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and Kukdo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdo Chemical and SS TECH 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 SS TECH are associated (or correlated) with Kukdo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdo Chemical has no effect on the direction of SS TECH i.e., SS TECH and Kukdo Chemical go up and down completely randomly.
Pair Corralation between SS TECH and Kukdo Chemical
Assuming the 90 days trading horizon SS TECH is expected to generate 1.61 times more return on investment than Kukdo Chemical. However, SS TECH is 1.61 times more volatile than Kukdo Chemical Co. It trades about 0.02 of its potential returns per unit of risk. Kukdo Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 2,882,692 in SS TECH on October 26, 2024 and sell it today you would earn a total of 207,308 from holding SS TECH or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. Kukdo Chemical Co
Performance |
| Timeline |
| SS TECH |
| Kukdo Chemical |
SS TECH and Kukdo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and Kukdo Chemical
The main advantage of trading using opposite SS TECH and Kukdo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, Kukdo Chemical 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 Kukdo Chemical will offset losses from the drop in Kukdo Chemical's long position.| SS TECH vs. Samsung Electronics Co | SS TECH vs. Samsung Electronics Co | SS TECH vs. SK Hynix | SS TECH vs. HMM Co |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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