Correlation Between KIM KINDEX and KIM KINDEX
Can any of the company-specific risk be diversified away by investing in both KIM KINDEX and KIM KINDEX 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 KIM KINDEX and KIM KINDEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIM KINDEX Treasury and KIM KINDEX Japan, you can compare the effects of market volatilities on KIM KINDEX and KIM KINDEX 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 KIM KINDEX with a short position of KIM KINDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIM KINDEX and KIM KINDEX.
Diversification Opportunities for KIM KINDEX and KIM KINDEX
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KIM and KIM is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding KIM KINDEX Treasury and KIM KINDEX Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM KINDEX Japan and KIM KINDEX 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 KIM KINDEX Treasury are associated (or correlated) with KIM KINDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM KINDEX Japan has no effect on the direction of KIM KINDEX i.e., KIM KINDEX and KIM KINDEX go up and down completely randomly.
Pair Corralation between KIM KINDEX and KIM KINDEX
Assuming the 90 days trading horizon KIM KINDEX is expected to generate 1.12 times less return on investment than KIM KINDEX. But when comparing it to its historical volatility, KIM KINDEX Treasury is 47.49 times less risky than KIM KINDEX. It trades about 0.26 of its potential returns per unit of risk. KIM KINDEX Japan is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,526,000 in KIM KINDEX Japan on September 2, 2024 and sell it today you would lose (542,000) from holding KIM KINDEX Japan or give up 11.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIM KINDEX Treasury vs. KIM KINDEX Japan
Performance |
| Timeline |
| KIM KINDEX Treasury |
| KIM KINDEX Japan |
KIM KINDEX and KIM KINDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIM KINDEX and KIM KINDEX
The main advantage of trading using opposite KIM KINDEX and KIM KINDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIM KINDEX position performs unexpectedly, KIM KINDEX 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 KIM KINDEX will offset losses from the drop in KIM KINDEX's long position.| KIM KINDEX vs. Busan Industrial Co | KIM KINDEX vs. Busan Ind | KIM KINDEX vs. Mirae Asset Daewoo | KIM KINDEX vs. Shinhan WTI Futures |
| KIM KINDEX vs. KIM KINDEX Treasury | KIM KINDEX vs. KIM KINDEX 200 | KIM KINDEX vs. KIM KINDEX KOSPI | KIM KINDEX vs. KIM KINDEX Vietnam |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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