Correlation Between Kbi Metal and CU Medical
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and CU Medical 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 Kbi Metal and CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and CU Medical Systems, you can compare the effects of market volatilities on Kbi Metal and CU Medical 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 Kbi Metal with a short position of CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and CU Medical.
Diversification Opportunities for Kbi Metal and CU Medical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kbi and 115480 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems and Kbi Metal 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 Kbi Metal Co are associated (or correlated) with CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Kbi Metal i.e., Kbi Metal and CU Medical go up and down completely randomly.
Pair Corralation between Kbi Metal and CU Medical
Assuming the 90 days trading horizon Kbi Metal Co is expected to under-perform the CU Medical. In addition to that, Kbi Metal is 3.02 times more volatile than CU Medical Systems. It trades about -0.03 of its total potential returns per unit of risk. CU Medical Systems is currently generating about 0.0 per unit of volatility. If you would invest 70,100 in CU Medical Systems on September 25, 2024 and sell it today you would lose (1,400) from holding CU Medical Systems or give up 2.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kbi Metal Co vs. CU Medical Systems
Performance |
Timeline |
Kbi Metal |
CU Medical Systems |
Kbi Metal and CU Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kbi Metal and CU Medical
The main advantage of trading using opposite Kbi Metal and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.Kbi Metal vs. Woori Technology Investment | Kbi Metal vs. Samsung Card Co | Kbi Metal vs. Korea Real Estate | Kbi Metal vs. CHOROKBAEM PANY Co |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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