Correlation Between Kaonmedia and Husteel
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and Husteel 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 Kaonmedia and Husteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Husteel, you can compare the effects of market volatilities on Kaonmedia and Husteel 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 Kaonmedia with a short position of Husteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Husteel.
Diversification Opportunities for Kaonmedia and Husteel
Poor diversification
The 3 months correlation between Kaonmedia and Husteel is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Husteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husteel and Kaonmedia 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 Kaonmedia Co are associated (or correlated) with Husteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husteel has no effect on the direction of Kaonmedia i.e., Kaonmedia and Husteel go up and down completely randomly.
Pair Corralation between Kaonmedia and Husteel
Assuming the 90 days trading horizon Kaonmedia Co is expected to under-perform the Husteel. In addition to that, Kaonmedia is 1.65 times more volatile than Husteel. It trades about -0.03 of its total potential returns per unit of risk. Husteel is currently generating about -0.02 per unit of volatility. If you would invest 477,050 in Husteel on September 12, 2024 and sell it today you would lose (103,550) from holding Husteel or give up 21.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. Husteel
Performance |
| Timeline |
| Kaonmedia |
| Husteel |
Kaonmedia and Husteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Husteel
The main advantage of trading using opposite Kaonmedia and Husteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, Husteel 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 Husteel will offset losses from the drop in Husteel's long position.| Kaonmedia vs. Shinsegae Food | Kaonmedia vs. BGF Retail Co | Kaonmedia vs. Mgame Corp | Kaonmedia vs. Netmarble Games Corp |
| Husteel vs. LG Chemicals | Husteel vs. POSCO Holdings | Husteel vs. Hanwha Solutions | Husteel vs. Lotte Chemical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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