Correlation Between Kisan Telecom and Xavis
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Xavis 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 Xavis 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 Xavis Co, you can compare the effects of market volatilities on Kisan Telecom and Xavis 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 Xavis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Xavis.
Diversification Opportunities for Kisan Telecom and Xavis
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Xavis is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Xavis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xavis 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 Xavis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xavis has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Xavis go up and down completely randomly.
Pair Corralation between Kisan Telecom and Xavis
Assuming the 90 days trading horizon Kisan Telecom is expected to generate 1.2 times less return on investment than Xavis. But when comparing it to its historical volatility, Kisan Telecom Co is 1.63 times less risky than Xavis. It trades about 0.25 of its potential returns per unit of risk. Xavis Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 126,000 in Xavis Co on October 11, 2024 and sell it today you would earn a total of 10,300 from holding Xavis Co or generate 8.17% 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. Xavis Co
Performance |
| Timeline |
| Kisan Telecom |
| Xavis |
Kisan Telecom and Xavis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Xavis
The main advantage of trading using opposite Kisan Telecom and Xavis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Xavis 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 Xavis will offset losses from the drop in Xavis' 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 |
| Xavis vs. Korea Information Communications | Xavis vs. Korean Reinsurance Co | Xavis vs. Seoul Electronics Telecom | Xavis vs. Kisan Telecom Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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