Correlation Between BIT Computer and Kortek
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Kortek 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 BIT Computer and Kortek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Kortek, you can compare the effects of market volatilities on BIT Computer and Kortek 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 BIT Computer with a short position of Kortek. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Kortek.
Diversification Opportunities for BIT Computer and Kortek
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIT and Kortek is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Kortek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kortek and BIT Computer 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 BIT Computer Co are associated (or correlated) with Kortek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kortek has no effect on the direction of BIT Computer i.e., BIT Computer and Kortek go up and down completely randomly.
Pair Corralation between BIT Computer and Kortek
Assuming the 90 days trading horizon BIT Computer Co is expected to under-perform the Kortek. In addition to that, BIT Computer is 1.77 times more volatile than Kortek. It trades about 0.0 of its total potential returns per unit of risk. Kortek is currently generating about 0.0 per unit of volatility. If you would invest 889,575 in Kortek on December 4, 2024 and sell it today you would lose (57,575) from holding Kortek or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
BIT Computer Co vs. Kortek
Performance |
| Timeline |
| BIT Computer |
| Kortek |
BIT Computer and Kortek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Kortek
The main advantage of trading using opposite BIT Computer and Kortek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Kortek 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 Kortek will offset losses from the drop in Kortek's long position.| BIT Computer vs. Neungyule Education | BIT Computer vs. Insun Environment New | BIT Computer vs. Hanjin Transportation Co | BIT Computer vs. Wonil Special Steel |
| Kortek vs. FOODWELL Co | Kortek vs. SM Entertainment Co | Kortek vs. Haitai Confectionery Foods | Kortek vs. T3 Entertainment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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