Correlation Between BGF Retail and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both BGF Retail 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 BGF Retail and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and KyungIn Electronics Co, you can compare the effects of market volatilities on BGF Retail 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 BGF Retail with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and KyungIn Electronics.
Diversification Opportunities for BGF Retail and KyungIn Electronics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BGF and KyungIn is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail 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 BGF Retail 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 BGF Retail 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 BGF Retail i.e., BGF Retail and KyungIn Electronics go up and down completely randomly.
Pair Corralation between BGF Retail and KyungIn Electronics
Assuming the 90 days trading horizon BGF Retail Co is expected to under-perform the KyungIn Electronics. But the stock apears to be less risky and, when comparing its historical volatility, BGF Retail Co is 1.47 times less risky than KyungIn Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The KyungIn Electronics Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,354,010 in KyungIn Electronics Co on October 18, 2024 and sell it today you would lose (334,010) from holding KyungIn Electronics Co or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| BGF Retail |
| KyungIn Electronics |
BGF Retail and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and KyungIn Electronics
The main advantage of trading using opposite BGF Retail and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail 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.| BGF Retail vs. Drb Industrial | BGF Retail vs. Myoung Shin Industrial | BGF Retail vs. DRB Industrial Co | BGF Retail vs. Lotte Non Life Insurance |
| KyungIn Electronics vs. NICE Information Service | KyungIn Electronics vs. Jeong Moon Information | KyungIn Electronics vs. Nice Information Telecommunication | KyungIn Electronics vs. BGF Retail 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |