Correlation Between Kaonmedia and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and Wireless Power 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 Wireless Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Wireless Power Amplifier, you can compare the effects of market volatilities on Kaonmedia and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Wireless Power.
Diversification Opportunities for Kaonmedia and Wireless Power
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kaonmedia and Wireless is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Kaonmedia i.e., Kaonmedia and Wireless Power go up and down completely randomly.
Pair Corralation between Kaonmedia and Wireless Power
Assuming the 90 days trading horizon Kaonmedia is expected to generate 7.88 times less return on investment than Wireless Power. But when comparing it to its historical volatility, Kaonmedia Co is 1.65 times less risky than Wireless Power. It trades about 0.07 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 245,000 in Wireless Power Amplifier on October 16, 2024 and sell it today you would earn a total of 47,500 from holding Wireless Power Amplifier or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaonmedia Co vs. Wireless Power Amplifier
Performance |
| Timeline |
| Kaonmedia |
| Wireless Power Amplifier |
Kaonmedia and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Wireless Power
The main advantage of trading using opposite Kaonmedia and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Kaonmedia vs. TS Investment Corp | Kaonmedia vs. NH Investment Securities | Kaonmedia vs. Daelim Trading Co | Kaonmedia vs. Atinum Investment Co |
| Wireless Power vs. Jeju Bank | Wireless Power vs. Miwon Chemicals Co | Wireless Power vs. BNK Financial Group | Wireless Power vs. Koryo Credit Information |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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