Correlation Between KyungIn Electronics and Aniplus

Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Aniplus 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 KyungIn Electronics and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KyungIn Electronics Co and Aniplus, you can compare the effects of market volatilities on KyungIn Electronics and Aniplus 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 KyungIn Electronics with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Aniplus.

Diversification Opportunities for KyungIn Electronics and Aniplus

-0.8

Correlation Coefficient

KyungIn Electronics  Aniplus

Pay attention - limited upside

The 3 months correlation between KyungIn and Aniplus is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and KyungIn Electronics 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 KyungIn Electronics Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Aniplus go up and down completely randomly.

Pair Corralation between KyungIn Electronics and Aniplus

Assuming the 90 days trading horizon KyungIn Electronics Co is expected to under-perform the Aniplus. But the stock apears to be less risky and, when comparing its historical volatility, KyungIn Electronics Co is 2.4 times less risky than Aniplus. The stock trades about -0.15 of its potential returns per unit of risk. The Aniplus is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  260,000  in Aniplus on December 26, 2024 and sell it today you would earn a total of  52,500  from holding Aniplus or generate 20.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

KyungIn Electronics Co  vs.  Aniplus

KyungIn Electronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days KyungIn Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Aniplus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aniplus are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aniplus sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KyungIn Electronics and Aniplus

The main advantage of trading using opposite KyungIn Electronics and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.

The idea behind KyungIn Electronics Co and Aniplus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.