Correlation Between KTB Investment and HB Technology
Can any of the company-specific risk be diversified away by investing in both KTB Investment and HB Technology 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 HB Technology 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 HB Technology TD, you can compare the effects of market volatilities on KTB Investment and HB Technology 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 HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and HB Technology.
Diversification Opportunities for KTB Investment and HB Technology
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KTB and 078150 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD 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 HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of KTB Investment i.e., KTB Investment and HB Technology go up and down completely randomly.
Pair Corralation between KTB Investment and HB Technology
Assuming the 90 days trading horizon KTB Investment Securities is expected to under-perform the HB Technology. In addition to that, KTB Investment is 1.26 times more volatile than HB Technology TD. It trades about -0.06 of its total potential returns per unit of risk. HB Technology TD is currently generating about 0.43 per unit of volatility. If you would invest 196,400 in HB Technology TD on October 25, 2024 and sell it today you would earn a total of 64,100 from holding HB Technology TD or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. HB Technology TD
Performance |
| Timeline |
| KTB Investment Securities |
| HB Technology TD |
KTB Investment and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and HB Technology
The main advantage of trading using opposite KTB Investment and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology'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 |
| HB Technology vs. ENERGYMACHINERY KOREA CoLtd | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd | HB Technology vs. Sungdo Engineering Construction |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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