Correlation Between SKONEC Entertainment and Kg Chemical
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and Kg Chemical 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 SKONEC Entertainment and Kg Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and Kg Chemical, you can compare the effects of market volatilities on SKONEC Entertainment and Kg Chemical 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 SKONEC Entertainment with a short position of Kg Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and Kg Chemical.
Diversification Opportunities for SKONEC Entertainment and Kg Chemical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SKONEC and 001390 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and Kg Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kg Chemical and SKONEC Entertainment 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 SKONEC Entertainment Co are associated (or correlated) with Kg Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kg Chemical has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and Kg Chemical go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and Kg Chemical
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to generate 1.54 times more return on investment than Kg Chemical. However, SKONEC Entertainment is 1.54 times more volatile than Kg Chemical. It trades about 0.17 of its potential returns per unit of risk. Kg Chemical is currently generating about 0.01 per unit of risk. If you would invest 304,500 in SKONEC Entertainment Co on October 26, 2024 and sell it today you would earn a total of 119,500 from holding SKONEC Entertainment Co or generate 39.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. Kg Chemical
Performance |
| Timeline |
| SKONEC Entertainment |
| Kg Chemical |
SKONEC Entertainment and Kg Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and Kg Chemical
The main advantage of trading using opposite SKONEC Entertainment and Kg Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, Kg Chemical 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 Kg Chemical will offset losses from the drop in Kg Chemical's long position.| SKONEC Entertainment vs. Busan Industrial Co | SKONEC Entertainment vs. Busan Ind | SKONEC Entertainment vs. RPBio Inc | SKONEC Entertainment vs. Finebesteel |
| Kg Chemical vs. Duksan Hi Metal | Kg Chemical vs. Lee Ku Industrial | Kg Chemical vs. Tamul Multimedia Co | Kg Chemical vs. SKONEC Entertainment 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |