Correlation Between KTB Investment and Foodnamoo
Can any of the company-specific risk be diversified away by investing in both KTB Investment and Foodnamoo 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 Foodnamoo 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 Foodnamoo, you can compare the effects of market volatilities on KTB Investment and Foodnamoo 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 Foodnamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Foodnamoo.
Diversification Opportunities for KTB Investment and Foodnamoo
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KTB and Foodnamoo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Foodnamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodnamoo 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 Foodnamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodnamoo has no effect on the direction of KTB Investment i.e., KTB Investment and Foodnamoo go up and down completely randomly.
Pair Corralation between KTB Investment and Foodnamoo
Assuming the 90 days trading horizon KTB Investment Securities is expected to under-perform the Foodnamoo. In addition to that, KTB Investment is 2.64 times more volatile than Foodnamoo. It trades about -0.27 of its total potential returns per unit of risk. Foodnamoo is currently generating about -0.37 per unit of volatility. If you would invest 275,500 in Foodnamoo on October 28, 2024 and sell it today you would lose (27,000) from holding Foodnamoo or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Foodnamoo
Performance |
| Timeline |
| KTB Investment Securities |
| Foodnamoo |
KTB Investment and Foodnamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Foodnamoo
The main advantage of trading using opposite KTB Investment and Foodnamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, Foodnamoo 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 Foodnamoo will offset losses from the drop in Foodnamoo's long position.| KTB Investment vs. Lotte Data Communication | KTB Investment vs. Inzi Display CoLtd | KTB Investment vs. BIT Computer Co | KTB Investment vs. Ssangyong Information Communication |
| Foodnamoo vs. Pharmsville Co | Foodnamoo vs. Cherrybro coLtd | Foodnamoo vs. Busan Industrial Co | Foodnamoo vs. Busan Ind |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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