Correlation Between KT Submarine and Daiyang Metal
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Daiyang Metal 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 KT Submarine and Daiyang Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Submarine Telecom and Daiyang Metal Co, you can compare the effects of market volatilities on KT Submarine and Daiyang Metal 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 KT Submarine with a short position of Daiyang Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Daiyang Metal.
Diversification Opportunities for KT Submarine and Daiyang Metal
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 060370 and Daiyang is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Daiyang Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daiyang Metal and KT Submarine 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 KT Submarine Telecom are associated (or correlated) with Daiyang Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daiyang Metal has no effect on the direction of KT Submarine i.e., KT Submarine and Daiyang Metal go up and down completely randomly.
Pair Corralation between KT Submarine and Daiyang Metal
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 0.69 times more return on investment than Daiyang Metal. However, KT Submarine Telecom is 1.45 times less risky than Daiyang Metal. It trades about 0.07 of its potential returns per unit of risk. Daiyang Metal Co is currently generating about -0.02 per unit of risk. If you would invest 767,000 in KT Submarine Telecom on October 16, 2024 and sell it today you would earn a total of 878,000 from holding KT Submarine Telecom or generate 114.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.92% |
| Values | Daily Returns |
KT Submarine Telecom vs. Daiyang Metal Co
Performance |
| Timeline |
| KT Submarine Telecom |
| Daiyang Metal |
KT Submarine and Daiyang Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Daiyang Metal
The main advantage of trading using opposite KT Submarine and Daiyang Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Daiyang Metal 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 Daiyang Metal will offset losses from the drop in Daiyang Metal's long position.| KT Submarine vs. Incar Financial Service | KT Submarine vs. KB Financial Group | KT Submarine vs. MetaLabs Co | KT Submarine vs. Dongil Metal Co |
| Daiyang Metal vs. Hanmi Semiconductor Co | Daiyang Metal vs. ITM Semiconductor Co | Daiyang Metal vs. PI Advanced Materials | Daiyang Metal vs. Seoul Semiconductor 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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