Correlation Between Weiss Korea and Kruk SA

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

By analyzing existing cross correlation between Weiss Korea Opportunity and Kruk SA, you can compare the effects of market volatilities on Weiss Korea and Kruk SA 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 Weiss Korea with a short position of Kruk SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiss Korea and Kruk SA.

Diversification Opportunities for Weiss Korea and Kruk SA

0.31

Correlation Coefficient

Weiss Korea  Kruk SA

Weak diversification

The 3 months correlation between Weiss and Kruk is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Weiss Korea Opportunity and Kruk SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kruk SA and Weiss Korea 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 Weiss Korea Opportunity are associated (or correlated) with Kruk SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kruk SA has no effect on the direction of Weiss Korea i.e., Weiss Korea and Kruk SA go up and down completely randomly.

Pair Corralation between Weiss Korea and Kruk SA

Assuming the 90 days trading horizon Weiss Korea Opportunity is expected to generate 219.25 times more return on investment than Kruk SA. However, Weiss Korea is 219.25 times more volatile than Kruk SA. It trades about 0.2 of its potential returns per unit of risk. Kruk SA is currently generating about 0.12 per unit of risk. If you would invest  12,044  in Weiss Korea Opportunity on April 25, 2025 and sell it today you would earn a total of  3,056  from holding Weiss Korea Opportunity or generate 25.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Weiss Korea Opportunity  vs.  Kruk SA

Weiss Korea Opportunity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Weiss Korea Opportunity are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Weiss Korea unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kruk SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kruk SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Kruk SA is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Weiss Korea and Kruk SA

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

The idea behind Weiss Korea Opportunity and Kruk SA 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.