Correlation Between Kisan Telecom and Hanil Iron
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Hanil Iron 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 Kisan Telecom and Hanil Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and Hanil Iron Steel, you can compare the effects of market volatilities on Kisan Telecom and Hanil Iron 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 Kisan Telecom with a short position of Hanil Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Hanil Iron.
Diversification Opportunities for Kisan Telecom and Hanil Iron
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kisan and Hanil is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Hanil Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Iron Steel and Kisan Telecom 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 Kisan Telecom Co are associated (or correlated) with Hanil Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Iron Steel has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Hanil Iron go up and down completely randomly.
Pair Corralation between Kisan Telecom and Hanil Iron
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 2.4 times more return on investment than Hanil Iron. However, Kisan Telecom is 2.4 times more volatile than Hanil Iron Steel. It trades about 0.14 of its potential returns per unit of risk. Hanil Iron Steel is currently generating about 0.03 per unit of risk. If you would invest 180,300 in Kisan Telecom Co on November 18, 2024 and sell it today you would earn a total of 29,200 from holding Kisan Telecom Co or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Hanil Iron Steel
Performance |
| Timeline |
| Kisan Telecom |
| Hanil Iron Steel |
Kisan Telecom and Hanil Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Hanil Iron
The main advantage of trading using opposite Kisan Telecom and Hanil Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Hanil Iron 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 Hanil Iron will offset losses from the drop in Hanil Iron's long position.| Kisan Telecom vs. Automobile Pc | Kisan Telecom vs. WONIK Materials CoLtd | Kisan Telecom vs. RF Materials Co | Kisan Telecom vs. Iljin Materials Co |
| Hanil Iron vs. Sung Bo Chemicals | Hanil Iron vs. Ecoplastic | Hanil Iron vs. Daejoo Electronic Materials | Hanil Iron vs. Ssangyong Materials Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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