Correlation Between Polaris Office and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Polaris Office and KIWI Media 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 Polaris Office and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polaris Office Corp and KIWI Media Group, you can compare the effects of market volatilities on Polaris Office and KIWI Media 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 Polaris Office with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Office and KIWI Media.
Diversification Opportunities for Polaris Office and KIWI Media
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Polaris and KIWI is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Office Corp and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Polaris Office 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 Polaris Office Corp are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Polaris Office i.e., Polaris Office and KIWI Media go up and down completely randomly.
Pair Corralation between Polaris Office and KIWI Media
Assuming the 90 days trading horizon Polaris Office Corp is expected to generate 1.16 times more return on investment than KIWI Media. However, Polaris Office is 1.16 times more volatile than KIWI Media Group. It trades about 0.07 of its potential returns per unit of risk. KIWI Media Group is currently generating about 0.0 per unit of risk. If you would invest 148,000 in Polaris Office Corp on August 29, 2024 and sell it today you would earn a total of 437,000 from holding Polaris Office Corp or generate 295.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polaris Office Corp vs. KIWI Media Group
Performance |
| Timeline |
| Polaris Office Corp |
| KIWI Media Group |
Polaris Office and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polaris Office and KIWI Media
The main advantage of trading using opposite Polaris Office and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polaris Office position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Polaris Office vs. Daou Data Corp | Polaris Office vs. Busan Industrial Co | Polaris Office vs. Busan Ind | Polaris Office vs. Shinhan WTI Futures |
| KIWI Media vs. Iljin Display | KIWI Media vs. Total Soft Bank | KIWI Media vs. Playgram Co | KIWI Media vs. Korea Shipbuilding Offshore |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| 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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |