Correlation Between Kisan Telecom and Korea Real
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Korea Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on Kisan Telecom and Korea Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Korea Real.
Diversification Opportunities for Kisan Telecom and Korea Real
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Korea is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Korea Real go up and down completely randomly.
Pair Corralation between Kisan Telecom and Korea Real
Assuming the 90 days trading horizon Kisan Telecom Co is expected to under-perform the Korea Real. In addition to that, Kisan Telecom is 2.59 times more volatile than Korea Real Estate. It trades about -0.03 of its total potential returns per unit of risk. Korea Real Estate is currently generating about -0.04 per unit of volatility. If you would invest 124,578 in Korea Real Estate on August 28, 2024 and sell it today you would lose (21,478) from holding Korea Real Estate or give up 17.24% of portfolio value 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 Real Estate
Performance |
| Timeline |
| Kisan Telecom |
| Korea Real Estate |
Kisan Telecom and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Korea Real
The main advantage of trading using opposite Kisan Telecom and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Korea Real 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 Real will offset losses from the drop in Korea Real's long position.| Kisan Telecom vs. Korea Real Estate | Kisan Telecom vs. Korea Ratings Co | Kisan Telecom vs. IQuest Co | Kisan Telecom vs. Wonbang Tech Co |
| Korea Real vs. Samsung Electronics Co | Korea Real vs. Samsung Electronics Co | Korea Real vs. LG Energy Solution | Korea Real 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |