Correlation Between KIWI Media and Dongwoo Farm
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Dongwoo Farm 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 Dongwoo Farm 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 Dongwoo Farm To, you can compare the effects of market volatilities on KIWI Media and Dongwoo Farm 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 Dongwoo Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Dongwoo Farm.
Diversification Opportunities for KIWI Media and Dongwoo Farm
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KIWI and Dongwoo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Dongwoo Farm To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoo Farm To 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 Dongwoo Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoo Farm To has no effect on the direction of KIWI Media i.e., KIWI Media and Dongwoo Farm go up and down completely randomly.
Pair Corralation between KIWI Media and Dongwoo Farm
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 3.63 times more return on investment than Dongwoo Farm. However, KIWI Media is 3.63 times more volatile than Dongwoo Farm To. It trades about 0.0 of its potential returns per unit of risk. Dongwoo Farm To is currently generating about -0.05 per unit of risk. If you would invest 90,500 in KIWI Media Group on August 25, 2024 and sell it today you would lose (49,400) from holding KIWI Media Group or give up 54.59% 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. Dongwoo Farm To
Performance |
| Timeline |
| KIWI Media Group |
| Dongwoo Farm To |
KIWI Media and Dongwoo Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Dongwoo Farm
The main advantage of trading using opposite KIWI Media and Dongwoo Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Dongwoo Farm 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 Dongwoo Farm will offset losses from the drop in Dongwoo Farm'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 |
| Dongwoo Farm vs. Maeil Dairies Co | Dongwoo Farm vs. HYUNDAI FEED | Dongwoo Farm vs. Wooyang Co | Dongwoo Farm vs. Asia Seed CoLtd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |