Correlation Between KIWI Media and Keum Kang
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Keum Kang 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 Keum Kang 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 Keum Kang Steel, you can compare the effects of market volatilities on KIWI Media and Keum Kang 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 Keum Kang. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Keum Kang.
Diversification Opportunities for KIWI Media and Keum Kang
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KIWI and Keum is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Keum Kang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keum Kang 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 Keum Kang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keum Kang Steel has no effect on the direction of KIWI Media i.e., KIWI Media and Keum Kang go up and down completely randomly.
Pair Corralation between KIWI Media and Keum Kang
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 3.1 times more return on investment than Keum Kang. However, KIWI Media is 3.1 times more volatile than Keum Kang Steel. It trades about -0.02 of its potential returns per unit of risk. Keum Kang Steel is currently generating about -0.14 per unit of risk. If you would invest 42,000 in KIWI Media Group on September 26, 2024 and sell it today you would lose (2,800) from holding KIWI Media Group or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. Keum Kang Steel
Performance |
| Timeline |
| KIWI Media Group |
| Keum Kang Steel |
KIWI Media and Keum Kang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Keum Kang
The main advantage of trading using opposite KIWI Media and Keum Kang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Keum Kang 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 Keum Kang will offset losses from the drop in Keum Kang's long position.| KIWI Media vs. Korea Investment Holdings | KIWI Media vs. Daol Investment Securities | KIWI Media vs. Jeong Moon Information | KIWI Media vs. TS Investment Corp |
| Keum Kang vs. LG Chemicals | Keum Kang vs. POSCO Holdings | Keum Kang vs. Hanwha Solutions | Keum Kang 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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