Correlation Between Sk Biopharmaceutica and KakaoBank Corp
Can any of the company-specific risk be diversified away by investing in both Sk Biopharmaceutica and KakaoBank Corp 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 Sk Biopharmaceutica and KakaoBank Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sk Biopharmaceuticals Co and KakaoBank Corp, you can compare the effects of market volatilities on Sk Biopharmaceutica and KakaoBank Corp 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 Sk Biopharmaceutica with a short position of KakaoBank Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sk Biopharmaceutica and KakaoBank Corp.
Diversification Opportunities for Sk Biopharmaceutica and KakaoBank Corp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 326030 and KakaoBank is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sk Biopharmaceuticals Co and KakaoBank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KakaoBank Corp and Sk Biopharmaceutica 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 Sk Biopharmaceuticals Co are associated (or correlated) with KakaoBank Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KakaoBank Corp has no effect on the direction of Sk Biopharmaceutica i.e., Sk Biopharmaceutica and KakaoBank Corp go up and down completely randomly.
Pair Corralation between Sk Biopharmaceutica and KakaoBank Corp
Assuming the 90 days trading horizon Sk Biopharmaceuticals Co is expected to under-perform the KakaoBank Corp. In addition to that, Sk Biopharmaceutica is 1.11 times more volatile than KakaoBank Corp. It trades about -0.14 of its total potential returns per unit of risk. KakaoBank Corp is currently generating about 0.3 per unit of volatility. If you would invest 2,050,000 in KakaoBank Corp on September 13, 2024 and sell it today you would earn a total of 365,000 from holding KakaoBank Corp or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sk Biopharmaceuticals Co vs. KakaoBank Corp
Performance |
| Timeline |
| Sk Biopharmaceuticals |
| KakaoBank Corp |
Sk Biopharmaceutica and KakaoBank Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sk Biopharmaceutica and KakaoBank Corp
The main advantage of trading using opposite Sk Biopharmaceutica and KakaoBank Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sk Biopharmaceutica position performs unexpectedly, KakaoBank Corp 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 KakaoBank Corp will offset losses from the drop in KakaoBank Corp's long position.| Sk Biopharmaceutica vs. Samsung Biologics Co | Sk Biopharmaceutica vs. SK Bioscience Co | Sk Biopharmaceutica vs. ABL Bio | Sk Biopharmaceutica vs. Green Cross Lab |
| KakaoBank Corp vs. Daedong Steel Co | KakaoBank Corp vs. Bookook Steel | KakaoBank Corp vs. Hironic Co | KakaoBank Corp vs. J Steel 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 Stocks Directory module to find actively traded stocks across global markets.
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