Correlation Between Kiwoom and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both Kiwoom and Taegu Broadcasting 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 Kiwoom and Taegu Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiwoom and Taegu Broadcasting, you can compare the effects of market volatilities on Kiwoom and Taegu Broadcasting 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 Kiwoom with a short position of Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiwoom and Taegu Broadcasting.
Diversification Opportunities for Kiwoom and Taegu Broadcasting
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kiwoom and Taegu is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kiwoom and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting and Kiwoom 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 Kiwoom are associated (or correlated) with Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of Kiwoom i.e., Kiwoom and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between Kiwoom and Taegu Broadcasting
Assuming the 90 days trading horizon Kiwoom is expected to generate 3.88 times less return on investment than Taegu Broadcasting. In addition to that, Kiwoom is 1.23 times more volatile than Taegu Broadcasting. It trades about 0.01 of its total potential returns per unit of risk. Taegu Broadcasting is currently generating about 0.04 per unit of volatility. If you would invest 85,000 in Taegu Broadcasting on September 14, 2024 and sell it today you would earn a total of 6,500 from holding Taegu Broadcasting or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Kiwoom vs. Taegu Broadcasting
Performance |
| Timeline |
| Kiwoom |
| Taegu Broadcasting |
Kiwoom and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiwoom and Taegu Broadcasting
The main advantage of trading using opposite Kiwoom and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiwoom position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| Kiwoom vs. KB Financial Group | Kiwoom vs. Shinhan Financial Group | Kiwoom vs. Hana Financial | Kiwoom vs. Woori Financial Group |
| Taegu Broadcasting vs. Golden Bridge Investment | Taegu Broadcasting vs. SBI Investment KOREA | Taegu Broadcasting vs. Lotte Data Communication | Taegu Broadcasting vs. Woori Technology Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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