Correlation Between Kolon Plastics and Global Standard
Can any of the company-specific risk be diversified away by investing in both Kolon Plastics and Global Standard 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 Kolon Plastics and Global Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kolon Plastics and Global Standard Technology, you can compare the effects of market volatilities on Kolon Plastics and Global Standard 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 Kolon Plastics with a short position of Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kolon Plastics and Global Standard.
Diversification Opportunities for Kolon Plastics and Global Standard
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kolon and Global is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kolon Plastics and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech and Kolon Plastics 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 Kolon Plastics are associated (or correlated) with Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Kolon Plastics i.e., Kolon Plastics and Global Standard go up and down completely randomly.
Pair Corralation between Kolon Plastics and Global Standard
Assuming the 90 days trading horizon Kolon Plastics is expected to generate 0.42 times more return on investment than Global Standard. However, Kolon Plastics is 2.39 times less risky than Global Standard. It trades about -0.13 of its potential returns per unit of risk. Global Standard Technology is currently generating about -0.07 per unit of risk. If you would invest 547,000 in Kolon Plastics on November 7, 2024 and sell it today you would lose (17,000) from holding Kolon Plastics or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Kolon Plastics vs. Global Standard Technology
Performance |
| Timeline |
| Kolon Plastics |
| Global Standard Tech |
Kolon Plastics and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kolon Plastics and Global Standard
The main advantage of trading using opposite Kolon Plastics and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kolon Plastics position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| Kolon Plastics vs. AptaBio Therapeutics | Kolon Plastics vs. Daewoo SBI SPAC | Kolon Plastics vs. Dream Security co | Kolon Plastics vs. Microfriend |
| Global Standard vs. SH Energy Chemical | Global Standard vs. Mobile Appliance | Global Standard vs. Genie Music | Global Standard vs. Korea Information Communications |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |