Correlation Between DB HiTek and KIWI Media
Can any of the company-specific risk be diversified away by investing in both DB HiTek and KIWI Media 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 DB HiTek and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB HiTek Co and KIWI Media Group, you can compare the effects of market volatilities on DB HiTek and KIWI Media 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 DB HiTek with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB HiTek and KIWI Media.
Diversification Opportunities for DB HiTek and KIWI Media
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 000990 and KIWI is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding DB HiTek Co and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and DB HiTek 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 DB HiTek Co are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of DB HiTek i.e., DB HiTek and KIWI Media go up and down completely randomly.
Pair Corralation between DB HiTek and KIWI Media
Assuming the 90 days trading horizon DB HiTek is expected to generate 1.86 times less return on investment than KIWI Media. But when comparing it to its historical volatility, DB HiTek Co is 1.47 times less risky than KIWI Media. It trades about 0.09 of its potential returns per unit of risk. KIWI Media Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 39,900 in KIWI Media Group on September 14, 2024 and sell it today you would earn a total of 4,600 from holding KIWI Media Group or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB HiTek Co vs. KIWI Media Group
Performance |
| Timeline |
| DB HiTek |
| KIWI Media Group |
DB HiTek and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB HiTek and KIWI Media
The main advantage of trading using opposite DB HiTek and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB HiTek position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| DB HiTek vs. KIWI Media Group | DB HiTek vs. Inzi Display CoLtd | DB HiTek vs. Display Tech Co | DB HiTek vs. SAMG Entertainment Co |
| KIWI Media vs. Nam Hwa Construction | KIWI Media vs. Ssangyong Information Communication | KIWI Media vs. Shinsegae Information Communication | KIWI Media vs. Daishin Information Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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