Correlation Between KIWI Media and Polaris Office
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Polaris Office 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 Polaris Office 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 Polaris Office Corp, you can compare the effects of market volatilities on KIWI Media and Polaris Office 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 Polaris Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Polaris Office.
Diversification Opportunities for KIWI Media and Polaris Office
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KIWI and Polaris is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Polaris Office Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Office Corp 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 Polaris Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Office Corp has no effect on the direction of KIWI Media i.e., KIWI Media and Polaris Office go up and down completely randomly.
Pair Corralation between KIWI Media and Polaris Office
Assuming the 90 days trading horizon KIWI Media Group is expected to under-perform the Polaris Office. But the stock apears to be less risky and, when comparing its historical volatility, KIWI Media Group is 1.16 times less risky than Polaris Office. The stock trades about 0.0 of its potential returns per unit of risk. The Polaris Office Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 148,000 in Polaris Office Corp on August 29, 2024 and sell it today you would earn a total of 437,000 from holding Polaris Office Corp or generate 295.27% 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. Polaris Office Corp
Performance |
| Timeline |
| KIWI Media Group |
| Polaris Office Corp |
KIWI Media and Polaris Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Polaris Office
The main advantage of trading using opposite KIWI Media and Polaris Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Polaris Office 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 Polaris Office will offset losses from the drop in Polaris Office's long position.| KIWI Media vs. Iljin Display | KIWI Media vs. Total Soft Bank | KIWI Media vs. Playgram Co | KIWI Media vs. Korea Shipbuilding Offshore |
| Polaris Office vs. Daou Data Corp | Polaris Office vs. Busan Industrial Co | Polaris Office vs. Busan Ind | Polaris Office vs. Shinhan WTI Futures |
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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