Correlation Between KT Submarine and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Puloon Technology 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 Puloon Technology 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 Puloon Technology, you can compare the effects of market volatilities on KT Submarine and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Puloon Technology.
Diversification Opportunities for KT Submarine and Puloon Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 060370 and Puloon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of KT Submarine i.e., KT Submarine and Puloon Technology go up and down completely randomly.
Pair Corralation between KT Submarine and Puloon Technology
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 0.95 times more return on investment than Puloon Technology. However, KT Submarine Telecom is 1.05 times less risky than Puloon Technology. It trades about 0.08 of its potential returns per unit of risk. Puloon Technology is currently generating about 0.01 per unit of risk. If you would invest 540,000 in KT Submarine Telecom on October 13, 2024 and sell it today you would earn a total of 1,125,000 from holding KT Submarine Telecom or generate 208.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.83% |
| Values | Daily Returns |
KT Submarine Telecom vs. Puloon Technology
Performance |
| Timeline |
| KT Submarine Telecom |
| Puloon Technology |
KT Submarine and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Puloon Technology
The main advantage of trading using opposite KT Submarine and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| KT Submarine vs. Nable Communications | KT Submarine vs. KCC Engineering Construction | KT Submarine vs. BIT Computer Co | KT Submarine vs. Keyang Electric Machinery |
| Puloon Technology vs. JYP Entertainment Corp | Puloon Technology vs. Digital Multimedia Technology | Puloon Technology vs. Alton Sports CoLtd | Puloon Technology 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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