Correlation Between Koryo Credit and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and KT Submarine Telecom, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and KT Submarine.
Diversification Opportunities for Koryo Credit and KT Submarine
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koryo and 060370 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information 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 Koryo Credit 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 Koryo Credit Information 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 Koryo Credit i.e., Koryo Credit and KT Submarine go up and down completely randomly.
Pair Corralation between Koryo Credit and KT Submarine
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.23 times more return on investment than KT Submarine. However, Koryo Credit Information is 4.26 times less risky than KT Submarine. It trades about 0.05 of its potential returns per unit of risk. KT Submarine Telecom is currently generating about -0.03 per unit of risk. If you would invest 989,000 in Koryo Credit Information on August 29, 2024 and sell it today you would earn a total of 13,000 from holding Koryo Credit Information or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. KT Submarine Telecom
Performance |
| Timeline |
| Koryo Credit Information |
| KT Submarine Telecom |
Koryo Credit and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and KT Submarine
The main advantage of trading using opposite Koryo Credit and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Eagle Veterinary Technology | Koryo Credit vs. Daou Technology | Koryo Credit vs. NewFlex Technology Co | Koryo Credit vs. Puloon Technology |
| KT Submarine vs. AptaBio Therapeutics | KT Submarine vs. Daewoo SBI SPAC | KT Submarine vs. Dream Security co | KT Submarine vs. Microfriend |
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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