Correlation Between KTB Investment and A Tech
Can any of the company-specific risk be diversified away by investing in both KTB Investment and A Tech 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 A Tech 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 A Tech Solution Co, you can compare the effects of market volatilities on KTB Investment and A Tech 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 A Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and A Tech.
Diversification Opportunities for KTB Investment and A Tech
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KTB and 071670 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and A Tech Solution Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Tech Solution 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 A Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Tech Solution has no effect on the direction of KTB Investment i.e., KTB Investment and A Tech go up and down completely randomly.
Pair Corralation between KTB Investment and A Tech
Assuming the 90 days trading horizon KTB Investment Securities is expected to under-perform the A Tech. In addition to that, KTB Investment is 1.33 times more volatile than A Tech Solution Co. It trades about -0.27 of its total potential returns per unit of risk. A Tech Solution Co is currently generating about 0.19 per unit of volatility. If you would invest 539,000 in A Tech Solution Co on October 28, 2024 and sell it today you would earn a total of 53,000 from holding A Tech Solution Co or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. A Tech Solution Co
Performance |
| Timeline |
| KTB Investment Securities |
| A Tech Solution |
KTB Investment and A Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and A Tech
The main advantage of trading using opposite KTB Investment and A Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, A Tech 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 A Tech will offset losses from the drop in A Tech's long position.| KTB Investment vs. Hyunwoo Industrial Co | KTB Investment vs. Seoul Food Industrial | KTB Investment vs. Korea Industrial Co | KTB Investment vs. Shinil Industrial Co |
| A Tech vs. MediaZen | A Tech vs. Barunson Entertainment Arts | A Tech vs. Shinhan Inverse Silver | A Tech vs. Next Entertainment World |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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