Correlation Between DYPNF CoLtd and Kuk Young
Can any of the company-specific risk be diversified away by investing in both DYPNF CoLtd and Kuk Young 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 DYPNF CoLtd and Kuk Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DYPNF CoLtd and Kuk Young GM, you can compare the effects of market volatilities on DYPNF CoLtd and Kuk Young 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 DYPNF CoLtd with a short position of Kuk Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of DYPNF CoLtd and Kuk Young.
Diversification Opportunities for DYPNF CoLtd and Kuk Young
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DYPNF and Kuk is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding DYPNF CoLtd and Kuk Young GM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuk Young GM and DYPNF CoLtd 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 DYPNF CoLtd are associated (or correlated) with Kuk Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuk Young GM has no effect on the direction of DYPNF CoLtd i.e., DYPNF CoLtd and Kuk Young go up and down completely randomly.
Pair Corralation between DYPNF CoLtd and Kuk Young
Assuming the 90 days trading horizon DYPNF CoLtd is expected to under-perform the Kuk Young. But the stock apears to be less risky and, when comparing its historical volatility, DYPNF CoLtd is 1.62 times less risky than Kuk Young. The stock trades about -0.18 of its potential returns per unit of risk. The Kuk Young GM is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 117,900 in Kuk Young GM on August 25, 2024 and sell it today you would earn a total of 105,600 from holding Kuk Young GM or generate 89.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DYPNF CoLtd vs. Kuk Young GM
Performance |
| Timeline |
| DYPNF CoLtd |
| Kuk Young GM |
DYPNF CoLtd and Kuk Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DYPNF CoLtd and Kuk Young
The main advantage of trading using opposite DYPNF CoLtd and Kuk Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DYPNF CoLtd position performs unexpectedly, Kuk Young 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 Kuk Young will offset losses from the drop in Kuk Young's long position.| DYPNF CoLtd vs. Samsung Electronics Co | DYPNF CoLtd vs. Samsung Electronics Co | DYPNF CoLtd vs. LG Energy Solution | DYPNF CoLtd vs. SK Hynix |
| Kuk Young vs. Korea Information Communications | Kuk Young vs. Automobile Pc | Kuk Young vs. Golden Bridge Investment | Kuk Young vs. Asiana Airlines |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |