Correlation Between Kisan Telecom and Korea Information
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Korea Information 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 Korea Information 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 Korea Information Communications, you can compare the effects of market volatilities on Kisan Telecom and Korea Information 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 Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Korea Information.
Diversification Opportunities for Kisan Telecom and Korea Information
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kisan and Korea is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Korea Information Communicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information 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 Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Korea Information go up and down completely randomly.
Pair Corralation between Kisan Telecom and Korea Information
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 1.15 times more return on investment than Korea Information. However, Kisan Telecom is 1.15 times more volatile than Korea Information Communications. It trades about 0.14 of its potential returns per unit of risk. Korea Information Communications is currently generating about 0.05 per unit of risk. If you would invest 175,800 in Kisan Telecom Co on November 3, 2024 and sell it today you would earn a total of 4,600 from holding Kisan Telecom Co or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Korea Information Communicatio
Performance |
| Timeline |
| Kisan Telecom |
| Korea Information |
Kisan Telecom and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Korea Information
The main advantage of trading using opposite Kisan Telecom and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Kisan Telecom vs. Samsung Electronics Co | Kisan Telecom vs. Samsung Electronics Co | Kisan Telecom vs. Hyundai Motor Co | Kisan Telecom vs. Hyundai Motor |
| Korea Information vs. Homecast CoLtd | Korea Information vs. Daishin Information Communications | Korea Information vs. Sangsin Energy Display | Korea Information vs. LG Household Healthcare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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