Correlation Between LG Uplus and KIWI Media
Can any of the company-specific risk be diversified away by investing in both LG Uplus and KIWI Media 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 LG Uplus and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Uplus and KIWI Media Group, you can compare the effects of market volatilities on LG Uplus and KIWI Media 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 LG Uplus with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Uplus and KIWI Media.
Diversification Opportunities for LG Uplus and KIWI Media
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 032640 and KIWI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding LG Uplus and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and LG Uplus 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 LG Uplus are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of LG Uplus i.e., LG Uplus and KIWI Media go up and down completely randomly.
Pair Corralation between LG Uplus and KIWI Media
Assuming the 90 days trading horizon LG Uplus is expected to generate 0.14 times more return on investment than KIWI Media. However, LG Uplus is 7.08 times less risky than KIWI Media. It trades about 0.05 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.03 per unit of risk. If you would invest 980,474 in LG Uplus on September 15, 2024 and sell it today you would earn a total of 114,526 from holding LG Uplus or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
LG Uplus vs. KIWI Media Group
Performance |
| Timeline |
| LG Uplus |
| KIWI Media Group |
LG Uplus and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Uplus and KIWI Media
The main advantage of trading using opposite LG Uplus and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Uplus position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| LG Uplus vs. KIWI Media Group | LG Uplus vs. Samhyun Steel Co | LG Uplus vs. Bookook Steel | LG Uplus vs. SAMG Entertainment Co |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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