Correlation Between KTB Investment and Tway Air
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Tway Air 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 Tway Air 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 Tway Air Co, you can compare the effects of market volatilities on KTB Investment and Tway Air 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 Tway Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Tway Air.
Diversification Opportunities for KTB Investment and Tway Air
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KTB and Tway is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Tway Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tway Air 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 Tway Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tway Air has no effect on the direction of KTB Investment i.e., KTB Investment and Tway Air go up and down completely randomly.
Pair Corralation between KTB Investment and Tway Air
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 0.84 times more return on investment than Tway Air. However, KTB Investment Securities is 1.18 times less risky than Tway Air. It trades about 0.3 of its potential returns per unit of risk. Tway Air Co is currently generating about -0.22 per unit of risk. If you would invest 266,500 in KTB Investment Securities on September 25, 2024 and sell it today you would earn a total of 45,500 from holding KTB Investment Securities or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
KTB Investment Securities vs. Tway Air Co
Performance |
| Timeline |
| KTB Investment Securities |
| Tway Air |
KTB Investment and Tway Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Tway Air
The main advantage of trading using opposite KTB Investment and Tway Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Tway Air 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 Tway Air will offset losses from the drop in Tway Air's long position.| KTB Investment vs. Ssangyong Information Communication | KTB Investment vs. Samyung Trading Co | KTB Investment vs. TS Investment Corp | KTB Investment vs. Sangsangin 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |