Correlation Between KHVATEC CoLtd and Com2uS
Can any of the company-specific risk be diversified away by investing in both KHVATEC CoLtd and Com2uS 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 KHVATEC CoLtd and Com2uS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KHVATEC CoLtd and Com2uS, you can compare the effects of market volatilities on KHVATEC CoLtd and Com2uS 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 KHVATEC CoLtd with a short position of Com2uS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KHVATEC CoLtd and Com2uS.
Diversification Opportunities for KHVATEC CoLtd and Com2uS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KHVATEC and Com2uS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding KHVATEC CoLtd and Com2uS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com2uS and KHVATEC CoLtd 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 KHVATEC CoLtd are associated (or correlated) with Com2uS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com2uS has no effect on the direction of KHVATEC CoLtd i.e., KHVATEC CoLtd and Com2uS go up and down completely randomly.
Pair Corralation between KHVATEC CoLtd and Com2uS
Assuming the 90 days trading horizon KHVATEC CoLtd is expected to under-perform the Com2uS. But the stock apears to be less risky and, when comparing its historical volatility, KHVATEC CoLtd is 1.36 times less risky than Com2uS. The stock trades about -0.17 of its potential returns per unit of risk. The Com2uS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,090,000 in Com2uS on September 13, 2024 and sell it today you would earn a total of 815,000 from holding Com2uS or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
KHVATEC CoLtd vs. Com2uS
Performance |
| Timeline |
| KHVATEC CoLtd |
| Com2uS |
KHVATEC CoLtd and Com2uS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KHVATEC CoLtd and Com2uS
The main advantage of trading using opposite KHVATEC CoLtd and Com2uS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KHVATEC CoLtd position performs unexpectedly, Com2uS 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 Com2uS will offset losses from the drop in Com2uS's long position.| KHVATEC CoLtd vs. Cube Entertainment | KHVATEC CoLtd vs. Dreamus Company | KHVATEC CoLtd vs. LG Energy Solution | KHVATEC CoLtd vs. Dongwon System |
| Com2uS vs. YG Entertainment | Com2uS vs. JYP Entertainment | Com2uS vs. Cube Entertainment | Com2uS vs. FNC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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