Correlation Between KT Submarine and SillaJen
Can any of the company-specific risk be diversified away by investing in both KT Submarine and SillaJen 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 SillaJen 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 SillaJen, you can compare the effects of market volatilities on KT Submarine and SillaJen 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 SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and SillaJen.
Diversification Opportunities for KT Submarine and SillaJen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 060370 and SillaJen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen 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 SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of KT Submarine i.e., KT Submarine and SillaJen go up and down completely randomly.
Pair Corralation between KT Submarine and SillaJen
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 1.05 times more return on investment than SillaJen. However, KT Submarine is 1.05 times more volatile than SillaJen. It trades about 0.05 of its potential returns per unit of risk. SillaJen is currently generating about -0.04 per unit of risk. If you would invest 1,043,675 in KT Submarine Telecom on December 13, 2024 and sell it today you would earn a total of 496,325 from holding KT Submarine Telecom or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.21% |
| Values | Daily Returns |
KT Submarine Telecom vs. SillaJen
Performance |
| Timeline |
| KT Submarine Telecom |
| SillaJen |
KT Submarine and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and SillaJen
The main advantage of trading using opposite KT Submarine and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, SillaJen 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 SillaJen will offset losses from the drop in SillaJen's long position.| KT Submarine vs. Heungkuk Metaltech CoLtd | ||
| KT Submarine vs. Taeyang Metal Industrial | ||
| KT Submarine vs. Daejung Chemicals Metals | ||
| KT Submarine vs. Samlip General Foods |
| SillaJen vs. KT Submarine Telecom | ||
| SillaJen vs. BGF Retail Co | ||
| SillaJen vs. Echomarketing CoLtd | ||
| SillaJen vs. Daishin Information Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |