Correlation Between Microfriend and Kyung-In Synthetic
Can any of the company-specific risk be diversified away by investing in both Microfriend and Kyung-In Synthetic 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 Microfriend and Kyung-In Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microfriend and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Microfriend and Kyung-In Synthetic 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 Microfriend with a short position of Kyung-In Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microfriend and Kyung-In Synthetic.
Diversification Opportunities for Microfriend and Kyung-In Synthetic
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microfriend and Kyung-In is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Microfriend and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Microfriend 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 Microfriend are associated (or correlated) with Kyung-In Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Microfriend i.e., Microfriend and Kyung-In Synthetic go up and down completely randomly.
Pair Corralation between Microfriend and Kyung-In Synthetic
Assuming the 90 days trading horizon Microfriend is expected to under-perform the Kyung-In Synthetic. In addition to that, Microfriend is 2.94 times more volatile than Kyung In Synthetic Corp. It trades about -0.08 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.09 per unit of volatility. If you would invest 298,500 in Kyung In Synthetic Corp on September 23, 2024 and sell it today you would lose (22,500) from holding Kyung In Synthetic Corp or give up 7.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Microfriend vs. Kyung In Synthetic Corp
Performance |
Timeline |
Microfriend |
Kyung In Synthetic |
Microfriend and Kyung-In Synthetic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microfriend and Kyung-In Synthetic
The main advantage of trading using opposite Microfriend and Kyung-In Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microfriend position performs unexpectedly, Kyung-In Synthetic 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 Kyung-In Synthetic will offset losses from the drop in Kyung-In Synthetic's long position.Microfriend vs. Sam Yang Foods | Microfriend vs. Songwon Industrial Co | Microfriend vs. Sempio Foods Co | Microfriend vs. PJ Metal Co |
Kyung-In Synthetic vs. Koh Young Technology | Kyung-In Synthetic vs. People Technology | Kyung-In Synthetic vs. Sangsin Energy Display | Kyung-In Synthetic vs. Puloon 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |