Correlation Between Koh Young and Korean Air
Can any of the company-specific risk be diversified away by investing in both Koh Young and Korean Air 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 Koh Young and Korean Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koh Young Technology and Korean Air Lines, you can compare the effects of market volatilities on Koh Young and Korean Air 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 Koh Young with a short position of Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koh Young and Korean Air.
Diversification Opportunities for Koh Young and Korean Air
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koh and Korean is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Koh Young Technology and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines and Koh Young 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 Koh Young Technology are associated (or correlated) with Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Koh Young i.e., Koh Young and Korean Air go up and down completely randomly.
Pair Corralation between Koh Young and Korean Air
Assuming the 90 days trading horizon Koh Young Technology is expected to under-perform the Korean Air. In addition to that, Koh Young is 2.78 times more volatile than Korean Air Lines. It trades about -0.14 of its total potential returns per unit of risk. Korean Air Lines is currently generating about 0.01 per unit of volatility. If you would invest 2,290,000 in Korean Air Lines on September 12, 2024 and sell it today you would earn a total of 10,000 from holding Korean Air Lines or generate 0.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Koh Young Technology vs. Korean Air Lines
Performance |
Timeline |
Koh Young Technology |
Korean Air Lines |
Koh Young and Korean Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koh Young and Korean Air
The main advantage of trading using opposite Koh Young and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koh Young position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.Koh Young vs. Cube Entertainment | Koh Young vs. Dreamus Company | Koh Young vs. LG Energy Solution | Koh Young vs. Dongwon System |
Korean Air vs. Jin Air Co | Korean Air vs. Air Busan Co | Korean Air vs. Tway Air Co | Korean Air vs. Solution Advanced Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Stocks Directory Find actively traded stocks across global markets |