Correlation Between KTB Investment and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Daelim Trading 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 KTB Investment and Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTB Investment Securities and Daelim Trading Co, you can compare the effects of market volatilities on KTB Investment and Daelim Trading 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 KTB Investment with a short position of Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Daelim Trading.
Diversification Opportunities for KTB Investment and Daelim Trading
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KTB and Daelim is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading and KTB Investment 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 KTB Investment Securities are associated (or correlated) with Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of KTB Investment i.e., KTB Investment and Daelim Trading go up and down completely randomly.
Pair Corralation between KTB Investment and Daelim Trading
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 1.36 times more return on investment than Daelim Trading. However, KTB Investment is 1.36 times more volatile than Daelim Trading Co. It trades about 0.01 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.03 per unit of risk. If you would invest 339,571 in KTB Investment Securities on October 24, 2024 and sell it today you would lose (32,571) from holding KTB Investment Securities or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
KTB Investment Securities vs. Daelim Trading Co
Performance |
| Timeline |
| KTB Investment Securities |
| Daelim Trading |
KTB Investment and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Daelim Trading
The main advantage of trading using opposite KTB Investment and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| KTB Investment vs. T3 Entertainment Co | KTB Investment vs. ChipsMedia | KTB Investment vs. Lotte Data Communication | KTB Investment vs. MEDIANA CoLtd |
| Daelim Trading vs. TS Investment Corp | Daelim Trading vs. Atinum Investment Co | Daelim Trading vs. Wonil Special Steel | Daelim Trading vs. KTB Investment Securities |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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