Correlation Between KG Eco and Vissem Electronics
Can any of the company-specific risk be diversified away by investing in both KG Eco and Vissem Electronics 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 KG Eco and Vissem Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KG Eco Technology and Vissem Electronics Co, you can compare the effects of market volatilities on KG Eco and Vissem Electronics 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 KG Eco with a short position of Vissem Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KG Eco and Vissem Electronics.
Diversification Opportunities for KG Eco and Vissem Electronics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 151860 and Vissem is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding KG Eco Technology and Vissem Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vissem Electronics and KG Eco 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 KG Eco Technology are associated (or correlated) with Vissem Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vissem Electronics has no effect on the direction of KG Eco i.e., KG Eco and Vissem Electronics go up and down completely randomly.
Pair Corralation between KG Eco and Vissem Electronics
Assuming the 90 days trading horizon KG Eco Technology is expected to generate 1.54 times more return on investment than Vissem Electronics. However, KG Eco is 1.54 times more volatile than Vissem Electronics Co. It trades about -0.05 of its potential returns per unit of risk. Vissem Electronics Co is currently generating about -0.21 per unit of risk. If you would invest 506,000 in KG Eco Technology on November 6, 2024 and sell it today you would lose (10,000) from holding KG Eco Technology or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KG Eco Technology vs. Vissem Electronics Co
Performance |
| Timeline |
| KG Eco Technology |
| Vissem Electronics |
KG Eco and Vissem Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KG Eco and Vissem Electronics
The main advantage of trading using opposite KG Eco and Vissem Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KG Eco position performs unexpectedly, Vissem Electronics 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 Vissem Electronics will offset losses from the drop in Vissem Electronics' long position.| KG Eco vs. Nh Investment And | KG Eco vs. Grand Korea Leisure | KG Eco vs. Sangsangin Investment Securities | KG Eco vs. Coloray International Investment |
| Vissem Electronics vs. GS Engineering Construction | Vissem Electronics vs. Hanshin Construction Co | Vissem Electronics vs. Hanjoo Light Metal | Vissem Electronics vs. Daewoo Engineering Construction |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |