Correlation Between CKH Food and Insun Environment
Can any of the company-specific risk be diversified away by investing in both CKH Food and Insun Environment 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 CKH Food and Insun Environment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKH Food Health and Insun Environment New, you can compare the effects of market volatilities on CKH Food and Insun Environment 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 CKH Food with a short position of Insun Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKH Food and Insun Environment.
Diversification Opportunities for CKH Food and Insun Environment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CKH and Insun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CKH Food Health and Insun Environment New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insun Environment New and CKH Food 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 CKH Food Health are associated (or correlated) with Insun Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insun Environment New has no effect on the direction of CKH Food i.e., CKH Food and Insun Environment go up and down completely randomly.
Pair Corralation between CKH Food and Insun Environment
Assuming the 90 days trading horizon CKH Food Health is expected to under-perform the Insun Environment. But the stock apears to be less risky and, when comparing its historical volatility, CKH Food Health is 1.22 times less risky than Insun Environment. The stock trades about -0.16 of its potential returns per unit of risk. The Insun Environment New is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 552,000 in Insun Environment New on November 9, 2024 and sell it today you would earn a total of 12,000 from holding Insun Environment New or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CKH Food Health vs. Insun Environment New
Performance |
| Timeline |
| CKH Food Health |
| Insun Environment New |
CKH Food and Insun Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKH Food and Insun Environment
The main advantage of trading using opposite CKH Food and Insun Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKH Food position performs unexpectedly, Insun Environment 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 Insun Environment will offset losses from the drop in Insun Environment's long position.| CKH Food vs. Ssangyong Information Communication | CKH Food vs. Nice Information Telecommunication | CKH Food vs. NewFlex Technology Co | CKH Food vs. BIT Computer Co |
| Insun Environment vs. Dgb Financial | Insun Environment vs. PJ Metal Co | Insun Environment vs. DONGKUK TED METAL | Insun Environment vs. KakaoBank Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |