Correlation Between Husteel and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Husteel 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 Husteel and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and KIWI Media Group, you can compare the effects of market volatilities on Husteel 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 Husteel with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and KIWI Media.
Diversification Opportunities for Husteel and KIWI Media
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Husteel and KIWI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Husteel 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 Husteel 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 Husteel 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 Husteel i.e., Husteel and KIWI Media go up and down completely randomly.
Pair Corralation between Husteel and KIWI Media
Assuming the 90 days trading horizon Husteel is expected to generate 0.38 times more return on investment than KIWI Media. However, Husteel is 2.66 times less risky than KIWI Media. It trades about 0.0 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.03 per unit of risk. If you would invest 434,761 in Husteel on August 25, 2024 and sell it today you would lose (29,261) from holding Husteel or give up 6.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Husteel vs. KIWI Media Group
Performance |
| Timeline |
| Husteel |
| KIWI Media Group |
Husteel and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and KIWI Media
The main advantage of trading using opposite Husteel and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel 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.| Husteel vs. Korean Reinsurance Co | Husteel vs. Samsung Life Insurance | Husteel vs. Hansol Chemical Co | Husteel vs. Youl Chon Chemical |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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