Correlation Between KIWI Media and Doosan Fuel
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Doosan Fuel 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 Doosan Fuel 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 Doosan Fuel Cell, you can compare the effects of market volatilities on KIWI Media and Doosan Fuel 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 Doosan Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Doosan Fuel.
Diversification Opportunities for KIWI Media and Doosan Fuel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KIWI and Doosan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Doosan Fuel Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan Fuel Cell 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 Doosan Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan Fuel Cell has no effect on the direction of KIWI Media i.e., KIWI Media and Doosan Fuel go up and down completely randomly.
Pair Corralation between KIWI Media and Doosan Fuel
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 1.2 times more return on investment than Doosan Fuel. However, KIWI Media is 1.2 times more volatile than Doosan Fuel Cell. It trades about 0.12 of its potential returns per unit of risk. Doosan Fuel Cell is currently generating about 0.12 per unit of risk. If you would invest 40,900 in KIWI Media Group on September 13, 2024 and sell it today you would earn a total of 5,100 from holding KIWI Media Group or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. Doosan Fuel Cell
Performance |
| Timeline |
| KIWI Media Group |
| Doosan Fuel Cell |
KIWI Media and Doosan Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Doosan Fuel
The main advantage of trading using opposite KIWI Media and Doosan Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Doosan Fuel 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 Doosan Fuel will offset losses from the drop in Doosan Fuel'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 |
| Doosan Fuel vs. ABCO Electronics Co | Doosan Fuel vs. UJU Electronics Co | Doosan Fuel vs. Sungwoo Electronics Co | Doosan Fuel vs. Wireless Power Amplifier |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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