Correlation Between KTB Investment and Kortek
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Kortek 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 Kortek 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 Kortek, you can compare the effects of market volatilities on KTB Investment and Kortek 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 Kortek. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Kortek.
Diversification Opportunities for KTB Investment and Kortek
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KTB and Kortek is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Kortek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kortek 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 Kortek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kortek has no effect on the direction of KTB Investment i.e., KTB Investment and Kortek go up and down completely randomly.
Pair Corralation between KTB Investment and Kortek
Assuming the 90 days trading horizon KTB Investment Securities is expected to under-perform the Kortek. In addition to that, KTB Investment is 6.76 times more volatile than Kortek. It trades about -0.06 of its total potential returns per unit of risk. Kortek is currently generating about 0.12 per unit of volatility. If you would invest 794,975 in Kortek on October 25, 2024 and sell it today you would earn a total of 13,025 from holding Kortek or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Kortek
Performance |
| Timeline |
| KTB Investment Securities |
| Kortek |
KTB Investment and Kortek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Kortek
The main advantage of trading using opposite KTB Investment and Kortek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Kortek 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 Kortek will offset losses from the drop in Kortek's long position.| KTB Investment vs. Wonil Special Steel | KTB Investment vs. Kukil Metal Co | KTB Investment vs. DONGKUK TED METAL | KTB Investment vs. INSUN Environmental New |
| Kortek vs. Sangsin Energy Display | Kortek vs. Samsung Electronics Co | Kortek vs. Automobile Pc | Kortek vs. Alton Sports CoLtd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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