Correlation Between Kisan Telecom and KG Eco
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and KG Eco 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 KG Eco 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 KG Eco Technology, you can compare the effects of market volatilities on Kisan Telecom and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and KG Eco.
Diversification Opportunities for Kisan Telecom and KG Eco
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kisan and 151860 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and KG Eco go up and down completely randomly.
Pair Corralation between Kisan Telecom and KG Eco
Assuming the 90 days trading horizon Kisan Telecom is expected to generate 1.9 times less return on investment than KG Eco. But when comparing it to its historical volatility, Kisan Telecom Co is 1.57 times less risky than KG Eco. It trades about 0.25 of its potential returns per unit of risk. KG Eco Technology is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 453,159 in KG Eco Technology on October 11, 2024 and sell it today you would earn a total of 61,841 from holding KG Eco Technology or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. KG Eco Technology
Performance |
| Timeline |
| Kisan Telecom |
| KG Eco Technology |
Kisan Telecom and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and KG Eco
The main advantage of trading using opposite Kisan Telecom and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco's 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 |
| KG Eco vs. SK Telecom Co | KG Eco vs. Kisan Telecom Co | KG Eco vs. Sungmoon Electronics Co | KG Eco vs. Taegu Broadcasting |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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