Correlation Between Kisan Telecom and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Kisan Telecom and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Daewoo SBI.
Diversification Opportunities for Kisan Telecom and Daewoo SBI
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Daewoo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Daewoo SBI go up and down completely randomly.
Pair Corralation between Kisan Telecom and Daewoo SBI
Assuming the 90 days trading horizon Kisan Telecom is expected to generate 2.46 times less return on investment than Daewoo SBI. But when comparing it to its historical volatility, Kisan Telecom Co is 2.53 times less risky than Daewoo SBI. It trades about 0.09 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 255,500 in Daewoo SBI SPAC on October 12, 2024 and sell it today you would earn a total of 27,500 from holding Daewoo SBI SPAC or generate 10.76% 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. Daewoo SBI SPAC
Performance |
| Timeline |
| Kisan Telecom |
| Daewoo SBI SPAC |
Kisan Telecom and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Daewoo SBI
The main advantage of trading using opposite Kisan Telecom and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Kisan Telecom vs. Inzi Display CoLtd | Kisan Telecom vs. DataSolution | Kisan Telecom vs. Daishin Information Communications | Kisan Telecom vs. Alton Sports CoLtd |
| Daewoo SBI vs. Kisan Telecom Co | Daewoo SBI vs. YG Entertainment | Daewoo SBI vs. GS Retail Co | Daewoo SBI vs. Korea Information Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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