Correlation Between Kaonmedia and Samlip General
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and Samlip General 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 Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Samlip General Foods, you can compare the effects of market volatilities on Kaonmedia and Samlip General 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 Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Samlip General.
Diversification Opportunities for Kaonmedia and Samlip General
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kaonmedia and Samlip is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods 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 Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Kaonmedia i.e., Kaonmedia and Samlip General go up and down completely randomly.
Pair Corralation between Kaonmedia and Samlip General
Assuming the 90 days trading horizon Kaonmedia Co is expected to under-perform the Samlip General. In addition to that, Kaonmedia is 2.76 times more volatile than Samlip General Foods. It trades about -0.03 of its total potential returns per unit of risk. Samlip General Foods is currently generating about -0.05 per unit of volatility. If you would invest 6,822,286 in Samlip General Foods on September 3, 2024 and sell it today you would lose (2,112,286) from holding Samlip General Foods or give up 30.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. Samlip General Foods
Performance |
| Timeline |
| Kaonmedia |
| Samlip General Foods |
Kaonmedia and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Samlip General
The main advantage of trading using opposite Kaonmedia and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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