Correlation Between KTB Investment and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Mobileleader CoLtd 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 Mobileleader CoLtd 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 Mobileleader CoLtd, you can compare the effects of market volatilities on KTB Investment and Mobileleader CoLtd 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 Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Mobileleader CoLtd.
Diversification Opportunities for KTB Investment and Mobileleader CoLtd
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KTB and Mobileleader is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd 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 Mobileleader CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileleader CoLtd has no effect on the direction of KTB Investment i.e., KTB Investment and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between KTB Investment and Mobileleader CoLtd
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 2.83 times more return on investment than Mobileleader CoLtd. However, KTB Investment is 2.83 times more volatile than Mobileleader CoLtd. It trades about 0.3 of its potential returns per unit of risk. Mobileleader CoLtd is currently generating about -0.03 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Mobileleader CoLtd
Performance |
| Timeline |
| KTB Investment Securities |
| Mobileleader CoLtd |
KTB Investment and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Mobileleader CoLtd
The main advantage of trading using opposite KTB Investment and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Mobileleader CoLtd 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 Mobileleader CoLtd will offset losses from the drop in Mobileleader CoLtd's long position.| KTB Investment vs. AptaBio Therapeutics | KTB Investment vs. Wonbang Tech Co | KTB Investment vs. Busan Industrial Co | KTB Investment vs. Busan Ind |
| Mobileleader CoLtd vs. Dongsin Engineering Construction | Mobileleader CoLtd vs. Doosan Fuel Cell | Mobileleader CoLtd vs. Daishin Balance 1 | Mobileleader CoLtd vs. Total Soft Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |