Correlation Between Insung Information and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Insung Information 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 Insung Information and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insung Information Co and KIWI Media Group, you can compare the effects of market volatilities on Insung Information 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 Insung Information with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and KIWI Media.
Diversification Opportunities for Insung Information and KIWI Media
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Insung and KIWI is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information Co 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 Insung Information 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 Insung Information Co 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 Insung Information i.e., Insung Information and KIWI Media go up and down completely randomly.
Pair Corralation between Insung Information and KIWI Media
Assuming the 90 days trading horizon Insung Information Co is expected to generate 0.5 times more return on investment than KIWI Media. However, Insung Information Co is 2.02 times less risky than KIWI Media. It trades about -0.06 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.13 per unit of risk. If you would invest 214,500 in Insung Information Co on October 29, 2024 and sell it today you would lose (26,200) from holding Insung Information Co or give up 12.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. KIWI Media Group
Performance |
| Timeline |
| Insung Information |
| KIWI Media Group |
Insung Information and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and KIWI Media
The main advantage of trading using opposite Insung Information and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung Information 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.| Insung Information vs. Namhae Chemical | Insung Information vs. N2Tech Co | Insung Information vs. Wireless Power Amplifier | Insung Information vs. iNtRON Biotechnology |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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