Correlation Between KT Submarine and Kakao Games
Can any of the company-specific risk be diversified away by investing in both KT Submarine and Kakao Games 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 Kakao Games 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 Kakao Games Corp, you can compare the effects of market volatilities on KT Submarine and Kakao Games 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 Kakao Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Kakao Games.
Diversification Opportunities for KT Submarine and Kakao Games
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 060370 and Kakao is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Kakao Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakao Games Corp 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 Kakao Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakao Games Corp has no effect on the direction of KT Submarine i.e., KT Submarine and Kakao Games go up and down completely randomly.
Pair Corralation between KT Submarine and Kakao Games
Assuming the 90 days trading horizon KT Submarine is expected to generate 1.16 times less return on investment than Kakao Games. In addition to that, KT Submarine is 2.02 times more volatile than Kakao Games Corp. It trades about 0.08 of its total potential returns per unit of risk. Kakao Games Corp is currently generating about 0.19 per unit of volatility. If you would invest 1,585,000 in Kakao Games Corp on September 13, 2024 and sell it today you would earn a total of 182,000 from holding Kakao Games Corp or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Telecom vs. Kakao Games Corp
Performance |
| Timeline |
| KT Submarine Telecom |
| Kakao Games Corp |
KT Submarine and Kakao Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Kakao Games
The main advantage of trading using opposite KT Submarine and Kakao Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine position performs unexpectedly, Kakao Games 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 Kakao Games will offset losses from the drop in Kakao Games' long position.| KT Submarine vs. Samsung Electronics Co | KT Submarine vs. Samsung Electronics Co | KT Submarine vs. SK Hynix | KT Submarine vs. POSCO Holdings |
| Kakao Games vs. Devsisters corporation | Kakao Games vs. Konan Technology | Kakao Games vs. Nice Information Telecommunication | Kakao Games vs. SKONEC Entertainment Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |