Correlation Between Hana Materials and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Hana Materials 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 Hana Materials and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and Kukil Metal Co, you can compare the effects of market volatilities on Hana Materials 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 Hana Materials with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and Kukil Metal.
Diversification Opportunities for Hana Materials and Kukil Metal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hana and Kukil is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Hana Materials 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 Hana Materials 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 Hana Materials i.e., Hana Materials and Kukil Metal go up and down completely randomly.
Pair Corralation between Hana Materials and Kukil Metal
Assuming the 90 days trading horizon Hana Materials is expected to under-perform the Kukil Metal. In addition to that, Hana Materials is 3.58 times more volatile than Kukil Metal Co. It trades about -0.06 of its total potential returns per unit of risk. Kukil Metal Co is currently generating about 0.02 per unit of volatility. If you would invest 176,900 in Kukil Metal Co on November 6, 2024 and sell it today you would earn a total of 400.00 from holding Kukil Metal Co or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Materials vs. Kukil Metal Co
Performance |
| Timeline |
| Hana Materials |
| Kukil Metal |
Hana Materials and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and Kukil Metal
The main advantage of trading using opposite Hana Materials and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials 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.| Hana Materials vs. Coloray International Investment | Hana Materials vs. TS Investment Corp | Hana Materials vs. FOODWELL Co | Hana Materials vs. DSC Investment |
| Kukil Metal vs. Woori Technology Investment | Kukil Metal vs. DSC Investment | Kukil Metal vs. Nice Information Telecommunication | Kukil Metal vs. Mobileleader CoLtd |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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