Correlation Between Stic Investments and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Stic Investments and KIWI Media 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 Stic Investments and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and KIWI Media Group, you can compare the effects of market volatilities on Stic Investments and KIWI Media 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 Stic Investments with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and KIWI Media.
Diversification Opportunities for Stic Investments and KIWI Media
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stic and KIWI is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Stic Investments 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 Stic Investments are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Stic Investments i.e., Stic Investments and KIWI Media go up and down completely randomly.
Pair Corralation between Stic Investments and KIWI Media
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.17 times more return on investment than KIWI Media. However, Stic Investments is 6.05 times less risky than KIWI Media. It trades about -0.19 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.28 per unit of risk. If you would invest 873,000 in Stic Investments on November 7, 2024 and sell it today you would lose (36,000) from holding Stic Investments or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Stic Investments vs. KIWI Media Group
Performance |
| Timeline |
| Stic Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| KIWI Media Group |
Stic Investments and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and KIWI Media
The main advantage of trading using opposite Stic Investments and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Stic Investments vs. Genie Music | Stic Investments vs. Global Standard Technology | Stic Investments vs. Digital Imaging Technology | Stic Investments vs. SK IE Technology |
| KIWI Media vs. INFINITT Healthcare Co | KIWI Media vs. UJU Electronics Co | KIWI Media vs. Hanwha Chemical Corp | KIWI Media vs. Dongbang Transport Logistics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |