Correlation Between Korea Shipbuilding and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Korea Shipbuilding 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 Korea Shipbuilding and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Shipbuilding Offshore and KIWI Media Group, you can compare the effects of market volatilities on Korea Shipbuilding 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 Korea Shipbuilding with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Shipbuilding and KIWI Media.
Diversification Opportunities for Korea Shipbuilding and KIWI Media
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and KIWI is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Korea Shipbuilding Offshore 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 Korea Shipbuilding 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 Korea Shipbuilding Offshore 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 Korea Shipbuilding i.e., Korea Shipbuilding and KIWI Media go up and down completely randomly.
Pair Corralation between Korea Shipbuilding and KIWI Media
Assuming the 90 days trading horizon Korea Shipbuilding Offshore is expected to generate 0.99 times more return on investment than KIWI Media. However, Korea Shipbuilding Offshore is 1.01 times less risky than KIWI Media. It trades about 0.19 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.16 per unit of risk. If you would invest 18,340,000 in Korea Shipbuilding Offshore on September 1, 2024 and sell it today you would earn a total of 2,110,000 from holding Korea Shipbuilding Offshore or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Shipbuilding Offshore vs. KIWI Media Group
Performance |
| Timeline |
| Korea Shipbuilding |
| KIWI Media Group |
Korea Shipbuilding and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Shipbuilding and KIWI Media
The main advantage of trading using opposite Korea Shipbuilding and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Shipbuilding 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.| Korea Shipbuilding vs. Korea New Network | Korea Shipbuilding vs. ICD Co | Korea Shipbuilding vs. DYPNF CoLtd | Korea Shipbuilding vs. Busan Industrial Co |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |