Correlation Between Cuckoo Electronics and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and KyungIn 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 Cuckoo Electronics and KyungIn Electronics 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 KyungIn Electronics Co, you can compare the effects of market volatilities on Cuckoo Electronics and KyungIn 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 Cuckoo Electronics with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and KyungIn Electronics.
Diversification Opportunities for Cuckoo Electronics and KyungIn Electronics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cuckoo and KyungIn is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics 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 KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and KyungIn Electronics
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to under-perform the KyungIn Electronics. In addition to that, Cuckoo Electronics is 1.15 times more volatile than KyungIn Electronics Co. It trades about -0.11 of its total potential returns per unit of risk. KyungIn Electronics Co is currently generating about 0.13 per unit of volatility. If you would invest 2,085,000 in KyungIn Electronics Co on August 28, 2024 and sell it today you would earn a total of 65,000 from holding KyungIn Electronics Co or generate 3.12% 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. KyungIn Electronics Co
Performance |
| Timeline |
| Cuckoo Electronics |
| KyungIn Electronics |
Cuckoo Electronics and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and KyungIn Electronics
The main advantage of trading using opposite Cuckoo Electronics and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, KyungIn 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Cuckoo Electronics vs. Busan Industrial Co | Cuckoo Electronics vs. Busan Ind | Cuckoo Electronics vs. Mirae Asset Daewoo | Cuckoo Electronics vs. UNISEM Co |
| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |