Correlation Between MS Autotech and Koh Young
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Koh 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 MS Autotech and Koh Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Koh Young Technology, you can compare the effects of market volatilities on MS Autotech and Koh 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 MS Autotech with a short position of Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Koh Young.
Diversification Opportunities for MS Autotech and Koh Young
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 123040 and Koh is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology and MS Autotech 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 MS Autotech CoLtd are associated (or correlated) with Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of MS Autotech i.e., MS Autotech and Koh Young go up and down completely randomly.
Pair Corralation between MS Autotech and Koh Young
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to generate 1.26 times more return on investment than Koh Young. However, MS Autotech is 1.26 times more volatile than Koh Young Technology. It trades about -0.22 of its potential returns per unit of risk. Koh Young Technology is currently generating about -0.51 per unit of risk. If you would invest 312,000 in MS Autotech CoLtd on September 3, 2024 and sell it today you would lose (42,000) from holding MS Autotech CoLtd or give up 13.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Koh Young Technology
Performance |
| Timeline |
| MS Autotech CoLtd |
| Koh Young Technology |
MS Autotech and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Koh Young
The main advantage of trading using opposite MS Autotech and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Koh 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 Koh Young will offset losses from the drop in Koh Young's long position.| MS Autotech vs. EV Advanced Material | MS Autotech vs. Top Material Co | MS Autotech vs. Shinsegae Food | MS Autotech vs. Foodnamoo |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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