Correlation Between Moadata and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Moadata 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 Moadata and Kukil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moadata Co and Kukil Metal Co, you can compare the effects of market volatilities on Moadata 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 Moadata with a short position of Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moadata and Kukil Metal.
Diversification Opportunities for Moadata and Kukil Metal
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Moadata and Kukil is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Moadata Co and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal and Moadata 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 Moadata Co 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 Moadata i.e., Moadata and Kukil Metal go up and down completely randomly.
Pair Corralation between Moadata and Kukil Metal
Assuming the 90 days trading horizon Moadata Co is expected to generate 1.97 times more return on investment than Kukil Metal. However, Moadata is 1.97 times more volatile than Kukil Metal Co. It trades about -0.08 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.31 per unit of risk. If you would invest 162,100 in Moadata Co on September 1, 2024 and sell it today you would lose (9,900) from holding Moadata Co or give up 6.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moadata Co vs. Kukil Metal Co
Performance |
| Timeline |
| Moadata |
| Kukil Metal |
Moadata and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moadata and Kukil Metal
The main advantage of trading using opposite Moadata and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moadata 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.| Moadata vs. Devsisters corporation | Moadata vs. Konan Technology | Moadata vs. Nice Information Telecommunication | Moadata vs. InfoBank |
| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. Gyeongnam Steel Co | Kukil Metal vs. Jeil Steel Mfg |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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