Correlation Between KT Submarine and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on KT Submarine and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Duksan Hi.
Diversification Opportunities for KT Submarine and Duksan Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 060370 and Duksan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of KT Submarine i.e., KT Submarine and Duksan Hi go up and down completely randomly.
Pair Corralation between KT Submarine and Duksan Hi
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 1.77 times more return on investment than Duksan Hi. However, KT Submarine is 1.77 times more volatile than Duksan Hi Metal. It trades about 0.01 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.31 per unit of risk. If you would invest 1,502,000 in KT Submarine Telecom on September 5, 2024 and sell it today you would lose (26,000) from holding KT Submarine Telecom or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Telecom vs. Duksan Hi Metal
Performance |
| Timeline |
| KT Submarine Telecom |
| Duksan Hi Metal |
KT Submarine and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Duksan Hi
The main advantage of trading using opposite KT Submarine and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| KT Submarine vs. AptaBio Therapeutics | KT Submarine vs. Daewoo SBI SPAC | KT Submarine vs. Dream Security co | KT Submarine vs. Microfriend |
| Duksan Hi vs. Daejung Chemicals Metals | Duksan Hi vs. Formetal Co | Duksan Hi vs. Heungkuk Metaltech CoLtd | Duksan Hi 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |