Correlation Between Korea Investment and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Korea Investment and KIWI Media 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 Korea Investment and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Investment Holdings and KIWI Media Group, you can compare the effects of market volatilities on Korea Investment and KIWI Media 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 Korea Investment with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and KIWI Media.
Diversification Opportunities for Korea Investment and KIWI Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and KIWI is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Korea Investment 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 Korea Investment Holdings are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Korea Investment i.e., Korea Investment and KIWI Media go up and down completely randomly.
Pair Corralation between Korea Investment and KIWI Media
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.35 times more return on investment than KIWI Media. However, Korea Investment Holdings is 2.87 times less risky than KIWI Media. It trades about 0.04 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.15 per unit of risk. If you would invest 5,140,000 in Korea Investment Holdings on September 26, 2024 and sell it today you would earn a total of 150,000 from holding Korea Investment Holdings or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Investment Holdings vs. KIWI Media Group
Performance |
| Timeline |
| Korea Investment Holdings |
| KIWI Media Group |
Korea Investment and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Investment and KIWI Media
The main advantage of trading using opposite Korea Investment and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Wonbang Tech Co | Korea Investment vs. Busan Industrial Co | Korea Investment vs. Busan Ind |
| KIWI Media vs. Korea Investment Holdings | KIWI Media vs. Daol Investment Securities | KIWI Media vs. Jeong Moon Information | KIWI Media vs. TS Investment Corp |
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.
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