Correlation Between Kisan Telecom and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and KyungIn Electronics 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 KyungIn Electronics 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 KyungIn Electronics Co, you can compare the effects of market volatilities on Kisan Telecom and KyungIn Electronics 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 KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and KyungIn Electronics.
Diversification Opportunities for Kisan Telecom and KyungIn Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kisan and KyungIn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics 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 KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Kisan Telecom and KyungIn Electronics
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 0.98 times more return on investment than KyungIn Electronics. However, Kisan Telecom Co is 1.02 times less risky than KyungIn Electronics. It trades about 0.18 of its potential returns per unit of risk. KyungIn Electronics Co is currently generating about -0.24 per unit of risk. If you would invest 173,400 in Kisan Telecom Co on October 12, 2024 and sell it today you would earn a total of 8,100 from holding Kisan Telecom Co or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| Kisan Telecom |
| KyungIn Electronics |
Kisan Telecom and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and KyungIn Electronics
The main advantage of trading using opposite Kisan Telecom and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, KyungIn Electronics 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Kisan Telecom vs. DONGKUK TED METAL | Kisan Telecom vs. Ilji Technology Co | Kisan Telecom vs. Eugene Technology CoLtd | Kisan Telecom vs. Korea Shipbuilding Offshore |
| KyungIn Electronics vs. Woori Technology Investment | KyungIn Electronics vs. KTB Investment Securities | KyungIn Electronics vs. Kisan Telecom Co | KyungIn Electronics vs. TS Investment 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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