Correlation Between Taegu Broadcasting and Kiwoom
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting and Kiwoom 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 Taegu Broadcasting and Kiwoom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and Kiwoom, you can compare the effects of market volatilities on Taegu Broadcasting and Kiwoom 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 Taegu Broadcasting with a short position of Kiwoom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and Kiwoom.
Diversification Opportunities for Taegu Broadcasting and Kiwoom
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taegu and Kiwoom is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and Kiwoom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiwoom and Taegu Broadcasting 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 Taegu Broadcasting are associated (or correlated) with Kiwoom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiwoom has no effect on the direction of Taegu Broadcasting i.e., Taegu Broadcasting and Kiwoom go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and Kiwoom
Assuming the 90 days trading horizon Taegu Broadcasting is expected to generate 0.92 times more return on investment than Kiwoom. However, Taegu Broadcasting is 1.08 times less risky than Kiwoom. It trades about 0.3 of its potential returns per unit of risk. Kiwoom is currently generating about 0.0 per unit of risk. If you would invest 76,400 in Taegu Broadcasting on September 14, 2024 and sell it today you would earn a total of 15,100 from holding Taegu Broadcasting or generate 19.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Taegu Broadcasting vs. Kiwoom
Performance |
| Timeline |
| Taegu Broadcasting |
| Kiwoom |
Taegu Broadcasting and Kiwoom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and Kiwoom
The main advantage of trading using opposite Taegu Broadcasting and Kiwoom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting position performs unexpectedly, Kiwoom 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 Kiwoom will offset losses from the drop in Kiwoom's long position.| Taegu Broadcasting vs. Golden Bridge Investment | Taegu Broadcasting vs. SBI Investment KOREA | Taegu Broadcasting vs. Lotte Data Communication | Taegu Broadcasting vs. Woori Technology Investment |
| Kiwoom vs. KB Financial Group | Kiwoom vs. Shinhan Financial Group | Kiwoom vs. Hana Financial | Kiwoom vs. Woori Financial Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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