Correlation Between KCC Engineering and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both KCC Engineering and Daishin Balance 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 KCC Engineering and Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCC Engineering Construction and Daishin Balance No8, you can compare the effects of market volatilities on KCC Engineering and Daishin Balance 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 KCC Engineering with a short position of Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCC Engineering and Daishin Balance.
Diversification Opportunities for KCC Engineering and Daishin Balance
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KCC and Daishin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KCC Engineering Construction and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 and KCC Engineering 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 KCC Engineering Construction are associated (or correlated) with Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of KCC Engineering i.e., KCC Engineering and Daishin Balance go up and down completely randomly.
Pair Corralation between KCC Engineering and Daishin Balance
Assuming the 90 days trading horizon KCC Engineering Construction is expected to under-perform the Daishin Balance. But the stock apears to be less risky and, when comparing its historical volatility, KCC Engineering Construction is 2.27 times less risky than Daishin Balance. The stock trades about -0.06 of its potential returns per unit of risk. The Daishin Balance No8 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 478,000 in Daishin Balance No8 on October 25, 2024 and sell it today you would earn a total of 81,000 from holding Daishin Balance No8 or generate 16.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KCC Engineering Construction vs. Daishin Balance No8
Performance |
Timeline |
KCC Engineering Cons |
Daishin Balance No8 |
KCC Engineering and Daishin Balance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KCC Engineering and Daishin Balance
The main advantage of trading using opposite KCC Engineering and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCC Engineering position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.KCC Engineering vs. SK Telecom Co | KCC Engineering vs. Digital Power Communications | KCC Engineering vs. PJ Metal Co | KCC Engineering vs. Duksan Hi Metal |
Daishin Balance vs. Korea Information Communications | Daishin Balance vs. Tway Air Co | Daishin Balance vs. Air Busan Co | Daishin Balance vs. Korea Air Svc |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |