Correlation Between KIWI Media and Wonil Special
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on KIWI Media and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Wonil Special.
Diversification Opportunities for KIWI Media and Wonil Special
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KIWI and Wonil is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of KIWI Media i.e., KIWI Media and Wonil Special go up and down completely randomly.
Pair Corralation between KIWI Media and Wonil Special
Assuming the 90 days trading horizon KIWI Media Group is expected to under-perform the Wonil Special. In addition to that, KIWI Media is 2.38 times more volatile than Wonil Special Steel. It trades about -0.13 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about 0.12 per unit of volatility. If you would invest 706,000 in Wonil Special Steel on August 31, 2024 and sell it today you would earn a total of 22,000 from holding Wonil Special Steel or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. Wonil Special Steel
Performance |
| Timeline |
| KIWI Media Group |
| Wonil Special Steel |
KIWI Media and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Wonil Special
The main advantage of trading using opposite KIWI Media and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| KIWI Media vs. LG Household Healthcare | KIWI Media vs. Display Tech Co | KIWI Media vs. Sempio Foods Co | KIWI Media vs. Iljin Display |
| Wonil Special vs. LG Chemicals | Wonil Special vs. POSCO Holdings | Wonil Special vs. Hanwha Solutions | Wonil Special vs. Lotte Chemical Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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