Correlation Between KT Submarine and Daewon Media
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Daewon 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 KT Submarine and Daewon Media 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 Daewon Media Co, you can compare the effects of market volatilities on KT Submarine and Daewon 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 KT Submarine with a short position of Daewon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Daewon Media.
Diversification Opportunities for KT Submarine and Daewon Media
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 060370 and Daewon is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Daewon Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewon Media 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 Daewon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewon Media has no effect on the direction of KT Submarine i.e., KT Submarine and Daewon Media go up and down completely randomly.
Pair Corralation between KT Submarine and Daewon Media
Assuming the 90 days trading horizon KT Submarine Telecom is expected to under-perform the Daewon Media. In addition to that, KT Submarine is 1.79 times more volatile than Daewon Media Co. It trades about -0.01 of its total potential returns per unit of risk. Daewon Media Co is currently generating about 0.02 per unit of volatility. If you would invest 835,986 in Daewon Media Co on October 24, 2024 and sell it today you would earn a total of 19,014 from holding Daewon Media Co or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Telecom vs. Daewon Media Co
Performance |
| Timeline |
| KT Submarine Telecom |
| Daewon Media |
KT Submarine and Daewon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Daewon Media
The main advantage of trading using opposite KT Submarine and Daewon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Daewon 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 Daewon Media will offset losses from the drop in Daewon Media's long position.| KT Submarine vs. Barunson Entertainment Arts | KT Submarine vs. Daewon Media Co | KT Submarine vs. Cube Entertainment | KT Submarine vs. JC Chemical Co |
| Daewon Media vs. Daehan Steel | Daewon Media vs. Daechang Steel Co | Daewon Media vs. Dong A Steel Technology | Daewon Media vs. KT Submarine Telecom |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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