Correlation Between Kaonmedia and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and BIT Computer 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 BIT Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and BIT Computer Co, you can compare the effects of market volatilities on Kaonmedia and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and BIT Computer.
Diversification Opportunities for Kaonmedia and BIT Computer
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kaonmedia and BIT is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Kaonmedia i.e., Kaonmedia and BIT Computer go up and down completely randomly.
Pair Corralation between Kaonmedia and BIT Computer
Assuming the 90 days trading horizon Kaonmedia Co is expected to under-perform the BIT Computer. In addition to that, Kaonmedia is 2.25 times more volatile than BIT Computer Co. It trades about -0.01 of its total potential returns per unit of risk. BIT Computer Co is currently generating about 0.09 per unit of volatility. If you would invest 494,500 in BIT Computer Co on August 31, 2024 and sell it today you would earn a total of 13,500 from holding BIT Computer Co or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. BIT Computer Co
Performance |
| Timeline |
| Kaonmedia |
| BIT Computer |
Kaonmedia and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and BIT Computer
The main advantage of trading using opposite Kaonmedia and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
| BIT Computer vs. AptaBio Therapeutics | BIT Computer vs. KT Hitel | BIT Computer vs. SillaJen | BIT Computer vs. Cytogen |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |