Correlation Between Ilji Technology and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Kisan Telecom 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 Ilji Technology and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Kisan Telecom Co, you can compare the effects of market volatilities on Ilji Technology and Kisan Telecom 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 Ilji Technology with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Kisan Telecom.
Diversification Opportunities for Ilji Technology and Kisan Telecom
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ilji and Kisan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Ilji Technology i.e., Ilji Technology and Kisan Telecom go up and down completely randomly.
Pair Corralation between Ilji Technology and Kisan Telecom
Assuming the 90 days trading horizon Ilji Technology Co is expected to generate 1.34 times more return on investment than Kisan Telecom. However, Ilji Technology is 1.34 times more volatile than Kisan Telecom Co. It trades about 0.27 of its potential returns per unit of risk. Kisan Telecom Co is currently generating about 0.25 per unit of risk. If you would invest 342,303 in Ilji Technology Co on October 11, 2024 and sell it today you would earn a total of 35,697 from holding Ilji Technology Co or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Kisan Telecom Co
Performance |
| Timeline |
| Ilji Technology |
| Kisan Telecom |
Ilji Technology and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Kisan Telecom
The main advantage of trading using opposite Ilji Technology and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Ilji Technology vs. SAMG Entertainment Co | Ilji Technology vs. Genie Music | Ilji Technology vs. Korea Shipbuilding Offshore | Ilji Technology vs. Nasmedia Co |
| Kisan Telecom vs. DONGKUK TED METAL | Kisan Telecom vs. Ilji Technology Co | Kisan Telecom vs. Eugene Technology CoLtd | Kisan Telecom vs. Korea Shipbuilding Offshore |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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