Correlation Between LEENO Industrial and KIWI Media
Can any of the company-specific risk be diversified away by investing in both LEENO Industrial 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 LEENO Industrial and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LEENO Industrial and KIWI Media Group, you can compare the effects of market volatilities on LEENO Industrial 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 LEENO Industrial with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEENO Industrial and KIWI Media.
Diversification Opportunities for LEENO Industrial and KIWI Media
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LEENO and KIWI is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding LEENO Industrial 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 LEENO Industrial 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 LEENO Industrial 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 LEENO Industrial i.e., LEENO Industrial and KIWI Media go up and down completely randomly.
Pair Corralation between LEENO Industrial and KIWI Media
Assuming the 90 days trading horizon LEENO Industrial is expected to generate 0.53 times more return on investment than KIWI Media. However, LEENO Industrial is 1.88 times less risky than KIWI Media. It trades about 0.23 of its potential returns per unit of risk. KIWI Media Group is currently generating about 0.03 per unit of risk. If you would invest 15,300,800 in LEENO Industrial on October 16, 2024 and sell it today you would earn a total of 3,889,200 from holding LEENO Industrial or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LEENO Industrial vs. KIWI Media Group
Performance |
| Timeline |
| LEENO Industrial |
| KIWI Media Group |
LEENO Industrial and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LEENO Industrial and KIWI Media
The main advantage of trading using opposite LEENO Industrial and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEENO Industrial 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.| LEENO Industrial vs. Tokai Carbon Korea | LEENO Industrial vs. LF Co | LEENO Industrial vs. Koh Young Technology |
| KIWI Media vs. Lee Ku Industrial | KIWI Media vs. LEENO Industrial | KIWI Media vs. Jeju Semiconductor Corp | KIWI Media vs. PJ Metal 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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