Correlation Between Inzi Display and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Inzi Display and KT Submarine 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 Inzi Display and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and KT Submarine Telecom, you can compare the effects of market volatilities on Inzi Display and KT Submarine 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 Inzi Display with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and KT Submarine.
Diversification Opportunities for Inzi Display and KT Submarine
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inzi and 060370 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and KT Submarine Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine Telecom and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine Telecom has no effect on the direction of Inzi Display i.e., Inzi Display and KT Submarine go up and down completely randomly.
Pair Corralation between Inzi Display and KT Submarine
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the KT Submarine. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 2.83 times less risky than KT Submarine. The stock trades about -0.18 of its potential returns per unit of risk. The KT Submarine Telecom is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,813,000 in KT Submarine Telecom on October 18, 2024 and sell it today you would lose (143,000) from holding KT Submarine Telecom or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. KT Submarine Telecom
Performance |
| Timeline |
| Inzi Display CoLtd |
| KT Submarine Telecom |
Inzi Display and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and KT Submarine
The main advantage of trading using opposite Inzi Display and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| Inzi Display vs. Kukil Metal Co | Inzi Display vs. Nice Information Telecommunication | Inzi Display vs. Dongil Metal Co | Inzi Display vs. Ssangyong Information Communication |
| KT Submarine vs. Inzi Display CoLtd | KT Submarine vs. Vissem Electronics Co | KT Submarine vs. PlayD Co | KT Submarine vs. Samji Electronics 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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