Correlation Between KT Submarine and Derkwoo Electronics
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Derkwoo Electronics 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 Derkwoo Electronics 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 Derkwoo Electronics Co, you can compare the effects of market volatilities on KT Submarine and Derkwoo Electronics 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 Derkwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Derkwoo Electronics.
Diversification Opportunities for KT Submarine and Derkwoo Electronics
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 060370 and Derkwoo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Derkwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Derkwoo Electronics 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 Derkwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Derkwoo Electronics has no effect on the direction of KT Submarine i.e., KT Submarine and Derkwoo Electronics go up and down completely randomly.
Pair Corralation between KT Submarine and Derkwoo Electronics
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 1.24 times more return on investment than Derkwoo Electronics. However, KT Submarine is 1.24 times more volatile than Derkwoo Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Derkwoo Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 810,000 in KT Submarine Telecom on August 28, 2024 and sell it today you would earn a total of 611,000 from holding KT Submarine Telecom or generate 75.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.79% |
| Values | Daily Returns |
KT Submarine Telecom vs. Derkwoo Electronics Co
Performance |
| Timeline |
| KT Submarine Telecom |
| Derkwoo Electronics |
KT Submarine and Derkwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Derkwoo Electronics
The main advantage of trading using opposite KT Submarine and Derkwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Derkwoo Electronics 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 Derkwoo Electronics will offset losses from the drop in Derkwoo Electronics' long position.| KT Submarine vs. AptaBio Therapeutics | KT Submarine vs. Daewoo SBI SPAC | KT Submarine vs. Dream Security co | KT Submarine vs. Microfriend |
| Derkwoo Electronics vs. Samsung Electronics Co | Derkwoo Electronics vs. Samsung Electronics Co | Derkwoo Electronics vs. LG Energy Solution | Derkwoo Electronics vs. SK Hynix |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |