Correlation Between KakaoBank Corp and Osang Healthcare
Can any of the company-specific risk be diversified away by investing in both KakaoBank Corp and Osang Healthcare 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 KakaoBank Corp and Osang Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KakaoBank Corp and Osang Healthcare Co,Ltd, you can compare the effects of market volatilities on KakaoBank Corp and Osang Healthcare 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 KakaoBank Corp with a short position of Osang Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KakaoBank Corp and Osang Healthcare.
Diversification Opportunities for KakaoBank Corp and Osang Healthcare
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KakaoBank and Osang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding KakaoBank Corp and Osang Healthcare Co,Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osang Healthcare Co,Ltd and KakaoBank Corp 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 KakaoBank Corp are associated (or correlated) with Osang Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osang Healthcare Co,Ltd has no effect on the direction of KakaoBank Corp i.e., KakaoBank Corp and Osang Healthcare go up and down completely randomly.
Pair Corralation between KakaoBank Corp and Osang Healthcare
Assuming the 90 days trading horizon KakaoBank Corp is expected to generate 0.88 times more return on investment than Osang Healthcare. However, KakaoBank Corp is 1.14 times less risky than Osang Healthcare. It trades about 0.04 of its potential returns per unit of risk. Osang Healthcare Co,Ltd is currently generating about -0.19 per unit of risk. If you would invest 2,220,000 in KakaoBank Corp on August 29, 2024 and sell it today you would earn a total of 30,000 from holding KakaoBank Corp or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KakaoBank Corp vs. Osang Healthcare Co,Ltd
Performance |
| Timeline |
| KakaoBank Corp |
| Osang Healthcare Co,Ltd |
KakaoBank Corp and Osang Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KakaoBank Corp and Osang Healthcare
The main advantage of trading using opposite KakaoBank Corp and Osang Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KakaoBank Corp position performs unexpectedly, Osang Healthcare 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 Osang Healthcare will offset losses from the drop in Osang Healthcare's long position.| KakaoBank Corp vs. Shinhan Financial Group | KakaoBank Corp vs. Hana Financial | KakaoBank Corp vs. Woori Financial Group | KakaoBank Corp vs. Industrial Bank |
| Osang Healthcare vs. Coloray International Investment | Osang Healthcare vs. Hanwha InvestmentSecurities Co | Osang Healthcare vs. Dongil Metal Co | Osang Healthcare vs. Stic Investments |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |