Correlation Between Kisan Telecom and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Jeju Semiconductor 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 Jeju Semiconductor 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 Jeju Semiconductor Corp, you can compare the effects of market volatilities on Kisan Telecom and Jeju Semiconductor 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 Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Jeju Semiconductor.
Diversification Opportunities for Kisan Telecom and Jeju Semiconductor
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Jeju is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp 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 Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Kisan Telecom and Jeju Semiconductor
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 0.45 times more return on investment than Jeju Semiconductor. However, Kisan Telecom Co is 2.21 times less risky than Jeju Semiconductor. It trades about 0.03 of its potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about -0.1 per unit of risk. If you would invest 174,400 in Kisan Telecom Co on September 23, 2024 and sell it today you would earn a total of 1,300 from holding Kisan Telecom Co or generate 0.75% 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. Jeju Semiconductor Corp
Performance |
| Timeline |
| Kisan Telecom |
| Jeju Semiconductor Corp |
Kisan Telecom and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Jeju Semiconductor
The main advantage of trading using opposite Kisan Telecom and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Kisan Telecom vs. Dongsin Engineering Construction | Kisan Telecom vs. Doosan Fuel Cell | Kisan Telecom vs. Daishin Balance 1 | Kisan Telecom vs. Total Soft Bank |
| Jeju Semiconductor vs. Sam Yang Foods | Jeju Semiconductor vs. Kisan Telecom Co | Jeju Semiconductor vs. KT Submarine Telecom | Jeju Semiconductor vs. CJ Seafood 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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