Correlation Between Hyosung Advanced and Kyung In
Can any of the company-specific risk be diversified away by investing in both Hyosung Advanced 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 Hyosung Advanced and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Advanced Materials and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Hyosung Advanced 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 Hyosung Advanced with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Advanced and Kyung In.
Diversification Opportunities for Hyosung Advanced and Kyung In
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hyosung and Kyung is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Advanced Materials 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 Hyosung Advanced 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 Hyosung Advanced Materials 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 Hyosung Advanced i.e., Hyosung Advanced and Kyung In go up and down completely randomly.
Pair Corralation between Hyosung Advanced and Kyung In
Assuming the 90 days trading horizon Hyosung Advanced Materials is expected to under-perform the Kyung In. In addition to that, Hyosung Advanced is 1.65 times more volatile than Kyung In Synthetic Corp. It trades about -0.12 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 371,960 in Kyung In Synthetic Corp on August 29, 2024 and sell it today you would lose (86,960) from holding Kyung In Synthetic Corp or give up 23.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Advanced Materials vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Hyosung Advanced Mat |
| Kyung In Synthetic |
Hyosung Advanced and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Advanced and Kyung In
The main advantage of trading using opposite Hyosung Advanced and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Advanced 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.| Hyosung Advanced vs. Busan Industrial Co | Hyosung Advanced vs. Busan Ind | Hyosung Advanced vs. Mirae Asset Daewoo | Hyosung Advanced vs. UNISEM Co |
| Kyung In vs. Korean Reinsurance Co | Kyung In vs. Lotte Non Life Insurance | Kyung In vs. Hyosung Advanced Materials | Kyung In vs. DB Financial Investment |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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