Correlation Between Kaonmedia and Access Bio
Can any of the company-specific risk be diversified away by investing in both Kaonmedia and Access Bio 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 Access Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaonmedia Co and Access Bio, you can compare the effects of market volatilities on Kaonmedia and Access Bio 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 Access Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaonmedia and Access Bio.
Diversification Opportunities for Kaonmedia and Access Bio
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kaonmedia and Access is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kaonmedia Co and Access Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Bio 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 Access Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Bio has no effect on the direction of Kaonmedia i.e., Kaonmedia and Access Bio go up and down completely randomly.
Pair Corralation between Kaonmedia and Access Bio
Assuming the 90 days trading horizon Kaonmedia is expected to generate 1.12 times less return on investment than Access Bio. But when comparing it to its historical volatility, Kaonmedia Co is 1.86 times less risky than Access Bio. It trades about 0.09 of its potential returns per unit of risk. Access Bio is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 519,000 in Access Bio on November 30, 2024 and sell it today you would earn a total of 33,000 from holding Access Bio or generate 6.36% 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. Access Bio
Performance |
| Timeline |
| Kaonmedia |
| Access Bio |
Kaonmedia and Access Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaonmedia and Access Bio
The main advantage of trading using opposite Kaonmedia and Access Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaonmedia position performs unexpectedly, Access Bio 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 Access Bio will offset losses from the drop in Access Bio's long position.| Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. SK Hynix | Kaonmedia vs. HMM Co |
| Access Bio vs. KakaoBank Corp | Access Bio vs. Alton Sports CoLtd | Access Bio vs. Hana Financial | Access Bio vs. DB Financial Investment |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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