Correlation Between Fine Besteel and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Kukil Metal 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 Fine Besteel and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Kukil Metal Co, you can compare the effects of market volatilities on Fine Besteel and Kukil Metal 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 Fine Besteel with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Kukil Metal.
Diversification Opportunities for Fine Besteel and Kukil Metal
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fine and Kukil is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Fine Besteel i.e., Fine Besteel and Kukil Metal go up and down completely randomly.
Pair Corralation between Fine Besteel and Kukil Metal
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.4 times more return on investment than Kukil Metal. However, Fine Besteel is 1.4 times more volatile than Kukil Metal Co. It trades about 0.06 of its potential returns per unit of risk. Kukil Metal Co is currently generating about 0.05 per unit of risk. If you would invest 104,700 in Fine Besteel Co on October 30, 2024 and sell it today you would earn a total of 4,700 from holding Fine Besteel Co or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Kukil Metal Co
Performance |
| Timeline |
| Fine Besteel |
| Kukil Metal |
Fine Besteel and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Kukil Metal
The main advantage of trading using opposite Fine Besteel and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Fine Besteel vs. Haitai Confectionery Foods | Fine Besteel vs. Woori Technology | Fine Besteel vs. iNtRON Biotechnology | Fine Besteel vs. Samyang Foods Co |
| Kukil Metal vs. Daejoo Electronic Materials | Kukil Metal vs. DB Insurance Co | Kukil Metal vs. RF Materials Co | Kukil Metal vs. Hyosung Advanced Materials |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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