Correlation Between KTB Investment and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on KTB Investment and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Daewoo SBI.
Diversification Opportunities for KTB Investment and Daewoo SBI
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KTB and Daewoo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of KTB Investment i.e., KTB Investment and Daewoo SBI go up and down completely randomly.
Pair Corralation between KTB Investment and Daewoo SBI
Assuming the 90 days trading horizon KTB Investment Securities is expected to under-perform the Daewoo SBI. In addition to that, KTB Investment is 1.88 times more volatile than Daewoo SBI SPAC. It trades about -0.11 of its total potential returns per unit of risk. Daewoo SBI SPAC is currently generating about 0.05 per unit of volatility. If you would invest 270,500 in Daewoo SBI SPAC on October 26, 2024 and sell it today you would earn a total of 5,000 from holding Daewoo SBI SPAC or generate 1.85% 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. Daewoo SBI SPAC
Performance |
| Timeline |
| KTB Investment Securities |
| Daewoo SBI SPAC |
KTB Investment and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Daewoo SBI
The main advantage of trading using opposite KTB Investment and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| KTB Investment vs. Solus Advanced Materials | KTB Investment vs. Polaris Office Corp | KTB Investment vs. Ecoplastic | KTB Investment vs. PI Advanced Materials |
| Daewoo SBI vs. KTB Investment Securities | Daewoo SBI vs. Woori Technology Investment | Daewoo SBI vs. Daechang Steel Co | Daewoo SBI vs. INSUN Environmental New |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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