Correlation Between KT Submarine and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both KT Submarine and INFINITT Healthcare 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 INFINITT Healthcare 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 INFINITT Healthcare Co, you can compare the effects of market volatilities on KT Submarine and INFINITT Healthcare 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 INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and INFINITT Healthcare.
Diversification Opportunities for KT Submarine and INFINITT Healthcare
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 060370 and INFINITT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare 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 INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of KT Submarine i.e., KT Submarine and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between KT Submarine and INFINITT Healthcare
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 2.29 times more return on investment than INFINITT Healthcare. However, KT Submarine is 2.29 times more volatile than INFINITT Healthcare Co. It trades about 0.04 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.05 per unit of risk. If you would invest 1,089,000 in KT Submarine Telecom on September 2, 2024 and sell it today you would earn a total of 261,000 from holding KT Submarine Telecom or generate 23.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.39% |
| Values | Daily Returns |
KT Submarine Telecom vs. INFINITT Healthcare Co
Performance |
| Timeline |
| KT Submarine Telecom |
| INFINITT Healthcare |
KT Submarine and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and INFINITT Healthcare
The main advantage of trading using opposite KT Submarine and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, INFINITT Healthcare 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 INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's long position.| KT Submarine vs. AptaBio Therapeutics | KT Submarine vs. Daewoo SBI SPAC | KT Submarine vs. Dream Security co | KT Submarine vs. Microfriend |
| INFINITT Healthcare vs. AptaBio Therapeutics | INFINITT Healthcare vs. KT Hitel | INFINITT Healthcare vs. SillaJen | INFINITT Healthcare vs. Cytogen |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |