Correlation Between Kia Corp and Daou Data
Can any of the company-specific risk be diversified away by investing in both Kia Corp and Daou Data 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 Kia Corp and Daou Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kia Corp and Daou Data Corp, you can compare the effects of market volatilities on Kia Corp and Daou Data 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 Kia Corp with a short position of Daou Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kia Corp and Daou Data.
Diversification Opportunities for Kia Corp and Daou Data
Very good diversification
The 3 months correlation between Kia and Daou is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kia Corp and Daou Data Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daou Data Corp and Kia Corp 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 Kia Corp are associated (or correlated) with Daou Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daou Data Corp has no effect on the direction of Kia Corp i.e., Kia Corp and Daou Data go up and down completely randomly.
Pair Corralation between Kia Corp and Daou Data
Assuming the 90 days trading horizon Kia Corp is expected to generate 1.52 times more return on investment than Daou Data. However, Kia Corp is 1.52 times more volatile than Daou Data Corp. It trades about 0.02 of its potential returns per unit of risk. Daou Data Corp is currently generating about -0.34 per unit of risk. If you would invest 10,120,000 in Kia Corp on October 21, 2024 and sell it today you would earn a total of 30,000 from holding Kia Corp or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kia Corp vs. Daou Data Corp
Performance |
| Timeline |
| Kia Corp |
| Daou Data Corp |
Kia Corp and Daou Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kia Corp and Daou Data
The main advantage of trading using opposite Kia Corp and Daou Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kia Corp position performs unexpectedly, Daou Data 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 Daou Data will offset losses from the drop in Daou Data's long position.| Kia Corp vs. Samsung Card Co | Kia Corp vs. EBEST Investment Securities | Kia Corp vs. Koh Young Technology | Kia Corp vs. Hansol Chemica |
| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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