Correlation Between Cuckoo Electronics and Korean Air
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and Korean Air 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 Cuckoo Electronics and Korean Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and Korean Air Lines, you can compare the effects of market volatilities on Cuckoo Electronics and Korean Air 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 Cuckoo Electronics with a short position of Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and Korean Air.
Diversification Opportunities for Cuckoo Electronics and Korean Air
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cuckoo and Korean is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines and Cuckoo Electronics 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 Cuckoo Electronics Co are associated (or correlated) with Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and Korean Air go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and Korean Air
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to generate 1.25 times more return on investment than Korean Air. However, Cuckoo Electronics is 1.25 times more volatile than Korean Air Lines. It trades about 0.06 of its potential returns per unit of risk. Korean Air Lines is currently generating about 0.02 per unit of risk. If you would invest 1,468,605 in Cuckoo Electronics Co on September 1, 2024 and sell it today you would earn a total of 841,395 from holding Cuckoo Electronics Co or generate 57.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. Korean Air Lines
Performance |
| Timeline |
| Cuckoo Electronics |
| Korean Air Lines |
Cuckoo Electronics and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and Korean Air
The main advantage of trading using opposite Cuckoo Electronics and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| Cuckoo Electronics vs. Hyunwoo Industrial Co | Cuckoo Electronics vs. Myoung Shin Industrial | Cuckoo Electronics vs. Seoyon Topmetal Co | Cuckoo Electronics vs. Eagon Industrial Co |
| Korean Air vs. Korea New Network | Korean Air vs. ICD Co | Korean Air vs. DYPNF CoLtd | Korean Air vs. Busan Industrial Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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