Correlation Between Com2uS and KHVATEC CoLtd
Can any of the company-specific risk be diversified away by investing in both Com2uS and KHVATEC CoLtd 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 Com2uS and KHVATEC CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com2uS and KHVATEC CoLtd, you can compare the effects of market volatilities on Com2uS and KHVATEC CoLtd 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 Com2uS with a short position of KHVATEC CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com2uS and KHVATEC CoLtd.
Diversification Opportunities for Com2uS and KHVATEC CoLtd
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Com2uS and KHVATEC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Com2uS and KHVATEC CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KHVATEC CoLtd and Com2uS 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 Com2uS are associated (or correlated) with KHVATEC CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KHVATEC CoLtd has no effect on the direction of Com2uS i.e., Com2uS and KHVATEC CoLtd go up and down completely randomly.
Pair Corralation between Com2uS and KHVATEC CoLtd
Assuming the 90 days trading horizon Com2uS is expected to generate 1.36 times more return on investment than KHVATEC CoLtd. However, Com2uS is 1.36 times more volatile than KHVATEC CoLtd. It trades about 0.15 of its potential returns per unit of risk. KHVATEC CoLtd is currently generating about -0.17 per unit of risk. 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 |
Com2uS vs. KHVATEC CoLtd
Performance |
| Timeline |
| Com2uS |
| KHVATEC CoLtd |
Com2uS and KHVATEC CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com2uS and KHVATEC CoLtd
The main advantage of trading using opposite Com2uS and KHVATEC CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com2uS position performs unexpectedly, KHVATEC CoLtd 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 KHVATEC CoLtd will offset losses from the drop in KHVATEC CoLtd's long position.| Com2uS vs. YG Entertainment | Com2uS vs. JYP Entertainment | Com2uS vs. Cube Entertainment | Com2uS vs. FNC Entertainment Co |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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