Correlation Between KTB Investment and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on KTB Investment and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Hankukpackage.
Diversification Opportunities for KTB Investment and Hankukpackage
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KTB and Hankukpackage is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of KTB Investment i.e., KTB Investment and Hankukpackage go up and down completely randomly.
Pair Corralation between KTB Investment and Hankukpackage
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 1.56 times more return on investment than Hankukpackage. However, KTB Investment is 1.56 times more volatile than Hankukpackage Co. It trades about 0.22 of its potential returns per unit of risk. Hankukpackage Co is currently generating about 0.18 per unit of risk. If you would invest 249,500 in KTB Investment Securities on October 11, 2024 and sell it today you would earn a total of 53,000 from holding KTB Investment Securities or generate 21.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Hankukpackage Co
Performance |
| Timeline |
| KTB Investment Securities |
| Hankukpackage |
KTB Investment and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Hankukpackage
The main advantage of trading using opposite KTB Investment and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| KTB Investment vs. Hwangkum Steel Technology | KTB Investment vs. Automobile Pc | KTB Investment vs. Handok Clean Tech | KTB Investment vs. Vina Technology Co |
| Hankukpackage vs. Wave Electronics Co | Hankukpackage vs. DB Financial Investment | Hankukpackage vs. KTB Investment Securities | Hankukpackage vs. Sungmoon Electronics Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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