Correlation Between Kisan Telecom and Daejoo Electronic
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Daejoo Electronic 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 Daejoo Electronic 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 Daejoo Electronic Materials, you can compare the effects of market volatilities on Kisan Telecom and Daejoo Electronic 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 Daejoo Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Daejoo Electronic.
Diversification Opportunities for Kisan Telecom and Daejoo Electronic
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Daejoo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Daejoo Electronic Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejoo Electronic 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 Daejoo Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejoo Electronic has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Daejoo Electronic go up and down completely randomly.
Pair Corralation between Kisan Telecom and Daejoo Electronic
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 0.36 times more return on investment than Daejoo Electronic. However, Kisan Telecom Co is 2.82 times less risky than Daejoo Electronic. It trades about -0.02 of its potential returns per unit of risk. Daejoo Electronic Materials is currently generating about -0.23 per unit of risk. If you would invest 178,900 in Kisan Telecom Co on August 30, 2024 and sell it today you would lose (1,000.00) from holding Kisan Telecom Co or give up 0.56% 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. Daejoo Electronic Materials
Performance |
| Timeline |
| Kisan Telecom |
| Daejoo Electronic |
Kisan Telecom and Daejoo Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Daejoo Electronic
The main advantage of trading using opposite Kisan Telecom and Daejoo Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Daejoo Electronic 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 Daejoo Electronic will offset losses from the drop in Daejoo Electronic's long position.| Kisan Telecom vs. Daou Data Corp | Kisan Telecom vs. Busan Industrial Co | Kisan Telecom vs. Busan Ind | Kisan Telecom vs. Shinhan WTI Futures |
| Daejoo Electronic vs. Daou Data Corp | Daejoo Electronic vs. Busan Industrial Co | Daejoo Electronic vs. Busan Ind | Daejoo Electronic vs. Shinhan WTI Futures |
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 CEOs Directory module to screen CEOs from public companies around the world.
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