Correlation Between KIWI Media and SAMRYOONG CoLtd
Can any of the company-specific risk be diversified away by investing in both KIWI Media and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd 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 SAMRYOONG CoLtd, you can compare the effects of market volatilities on KIWI Media and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and SAMRYOONG CoLtd.
Diversification Opportunities for KIWI Media and SAMRYOONG CoLtd
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KIWI and SAMRYOONG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and SAMRYOONG CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMRYOONG CoLtd 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 SAMRYOONG CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMRYOONG CoLtd has no effect on the direction of KIWI Media i.e., KIWI Media and SAMRYOONG CoLtd go up and down completely randomly.
Pair Corralation between KIWI Media and SAMRYOONG CoLtd
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 2.2 times more return on investment than SAMRYOONG CoLtd. However, KIWI Media is 2.2 times more volatile than SAMRYOONG CoLtd. It trades about -0.16 of its potential returns per unit of risk. SAMRYOONG CoLtd is currently generating about -0.36 per unit of risk. If you would invest 44,000 in KIWI Media Group on September 1, 2024 and sell it today you would lose (4,500) from holding KIWI Media Group or give up 10.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KIWI Media Group vs. SAMRYOONG CoLtd
Performance |
| Timeline |
| KIWI Media Group |
| SAMRYOONG CoLtd |
KIWI Media and SAMRYOONG CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and SAMRYOONG CoLtd
The main advantage of trading using opposite KIWI Media and SAMRYOONG CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, SAMRYOONG CoLtd 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 SAMRYOONG CoLtd will offset losses from the drop in SAMRYOONG CoLtd'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 |
| SAMRYOONG CoLtd vs. Union Materials Corp | SAMRYOONG CoLtd vs. INNOX Advanced Materials | SAMRYOONG CoLtd vs. Jeju Semiconductor Corp | SAMRYOONG CoLtd vs. Ecoplastic |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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