Correlation Between KIWI Media and GS Engineering
Can any of the company-specific risk be diversified away by investing in both KIWI Media and GS Engineering 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 KIWI Media and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIWI Media Group and GS Engineering Construction, you can compare the effects of market volatilities on KIWI Media and GS Engineering 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 KIWI Media with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and GS Engineering.
Diversification Opportunities for KIWI Media and GS Engineering
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KIWI and 006360 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and KIWI Media 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 KIWI Media Group are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of KIWI Media i.e., KIWI Media and GS Engineering go up and down completely randomly.
Pair Corralation between KIWI Media and GS Engineering
Assuming the 90 days trading horizon KIWI Media Group is expected to under-perform the GS Engineering. In addition to that, KIWI Media is 2.29 times more volatile than GS Engineering Construction. It trades about 0.0 of its total potential returns per unit of risk. GS Engineering Construction is currently generating about 0.0 per unit of volatility. If you would invest 2,068,091 in GS Engineering Construction on August 25, 2024 and sell it today you would lose (218,091) from holding GS Engineering Construction or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. GS Engineering Construction
Performance |
| Timeline |
| KIWI Media Group |
| GS Engineering Const |
KIWI Media and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and GS Engineering
The main advantage of trading using opposite KIWI Media and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering vs. Microfriend |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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