Correlation Between KTB Investment and Haesung DS
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on KTB Investment and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Haesung DS.
Diversification Opportunities for KTB Investment and Haesung DS
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KTB and Haesung is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of KTB Investment i.e., KTB Investment and Haesung DS go up and down completely randomly.
Pair Corralation between KTB Investment and Haesung DS
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 0.45 times more return on investment than Haesung DS. However, KTB Investment Securities is 2.22 times less risky than Haesung DS. It trades about -0.22 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.16 per unit of risk. If you would invest 299,000 in KTB Investment Securities on September 13, 2024 and sell it today you would lose (43,000) from holding KTB Investment Securities or give up 14.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Haesung DS Co
Performance |
| Timeline |
| KTB Investment Securities |
| Haesung DS |
KTB Investment and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Haesung DS
The main advantage of trading using opposite KTB Investment and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| KTB Investment vs. Samsung Electronics Co | KTB Investment vs. Samsung Electronics Co | KTB Investment vs. SK Hynix | KTB Investment vs. POSCO Holdings |
| Haesung DS vs. DB Financial Investment | Haesung DS vs. KTB Investment Securities | Haesung DS vs. TS Investment Corp | Haesung DS vs. Samyung Trading Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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