Correlation Between FoodNamoo and Kyung In
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and Kyung In 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 FoodNamoo and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and Kyung In Synthetic Corp, you can compare the effects of market volatilities on FoodNamoo and Kyung In 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 FoodNamoo with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and Kyung In.
Diversification Opportunities for FoodNamoo and Kyung In
Modest diversification
The 3 months correlation between FoodNamoo and Kyung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and FoodNamoo 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 FoodNamoo are associated (or correlated) with Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of FoodNamoo i.e., FoodNamoo and Kyung In go up and down completely randomly.
Pair Corralation between FoodNamoo and Kyung In
Assuming the 90 days trading horizon FoodNamoo is expected to under-perform the Kyung In. In addition to that, FoodNamoo is 1.41 times more volatile than Kyung In Synthetic Corp. It trades about -0.33 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about 0.07 per unit of volatility. If you would invest 278,500 in Kyung In Synthetic Corp on November 5, 2024 and sell it today you would earn a total of 3,500 from holding Kyung In Synthetic Corp or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FoodNamoo vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| FoodNamoo |
| Kyung In Synthetic |
FoodNamoo and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and Kyung In
The main advantage of trading using opposite FoodNamoo and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| FoodNamoo vs. Maeil Dairies Co | FoodNamoo vs. HYUNDAI FEED | FoodNamoo vs. Neo Cremar Co | FoodNamoo vs. Dongwoo Farm To |
| Kyung In vs. Daou Data Corp | Kyung In vs. Hanil Chemical Ind | Kyung In vs. Hanmi Semiconductor Co | Kyung In vs. Daishin Information Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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