Correlation Between KT Hitel and Vieworks
Can any of the company-specific risk be diversified away by investing in both KT Hitel and Vieworks 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 KT Hitel and Vieworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Hitel and Vieworks Co, you can compare the effects of market volatilities on KT Hitel and Vieworks 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 KT Hitel with a short position of Vieworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Hitel and Vieworks.
Diversification Opportunities for KT Hitel and Vieworks
Very weak diversification
The 3 months correlation between 036030 and Vieworks is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding KT Hitel and Vieworks Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vieworks and KT Hitel 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 KT Hitel are associated (or correlated) with Vieworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vieworks has no effect on the direction of KT Hitel i.e., KT Hitel and Vieworks go up and down completely randomly.
Pair Corralation between KT Hitel and Vieworks
Assuming the 90 days trading horizon KT Hitel is expected to generate 1.68 times more return on investment than Vieworks. However, KT Hitel is 1.68 times more volatile than Vieworks Co. It trades about -0.02 of its potential returns per unit of risk. Vieworks Co is currently generating about -0.03 per unit of risk. If you would invest 596,000 in KT Hitel on September 2, 2024 and sell it today you would lose (219,500) from holding KT Hitel or give up 36.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KT Hitel vs. Vieworks Co
Performance |
Timeline |
KT Hitel |
Vieworks |
KT Hitel and Vieworks Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KT Hitel and Vieworks
The main advantage of trading using opposite KT Hitel and Vieworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Hitel position performs unexpectedly, Vieworks 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 Vieworks will offset losses from the drop in Vieworks' long position.KT Hitel vs. Samsung Electronics Co | KT Hitel vs. Samsung Electronics Co | KT Hitel vs. LG Energy Solution | KT Hitel vs. SK Hynix |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |