Correlation Between KIWI Media and Wonik QnC
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Wonik QnC 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 Wonik QnC 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 Wonik QnC, you can compare the effects of market volatilities on KIWI Media and Wonik QnC 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 Wonik QnC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Wonik QnC.
Diversification Opportunities for KIWI Media and Wonik QnC
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KIWI and Wonik is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Wonik QnC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonik QnC 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 Wonik QnC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonik QnC has no effect on the direction of KIWI Media i.e., KIWI Media and Wonik QnC go up and down completely randomly.
Pair Corralation between KIWI Media and Wonik QnC
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 1.75 times more return on investment than Wonik QnC. However, KIWI Media is 1.75 times more volatile than Wonik QnC. It trades about -0.07 of its potential returns per unit of risk. Wonik QnC is currently generating about -0.16 per unit of risk. If you would invest 52,700 in KIWI Media Group on August 29, 2024 and sell it today you would lose (11,900) from holding KIWI Media Group or give up 22.58% 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. Wonik QnC
Performance |
| Timeline |
| KIWI Media Group |
| Wonik QnC |
KIWI Media and Wonik QnC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Wonik QnC
The main advantage of trading using opposite KIWI Media and Wonik QnC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Wonik QnC 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 Wonik QnC will offset losses from the drop in Wonik QnC'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 |
| Wonik QnC vs. Lotte Data Communication | Wonik QnC vs. Alton Sports CoLtd | Wonik QnC vs. Seoul Electronics Telecom | Wonik QnC vs. DC Media Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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