Correlation Between Nasmedia and KakaoBank Corp
Can any of the company-specific risk be diversified away by investing in both Nasmedia and KakaoBank Corp 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 Nasmedia and KakaoBank Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasmedia Co and KakaoBank Corp, you can compare the effects of market volatilities on Nasmedia and KakaoBank Corp 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 Nasmedia with a short position of KakaoBank Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasmedia and KakaoBank Corp.
Diversification Opportunities for Nasmedia and KakaoBank Corp
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nasmedia and KakaoBank is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nasmedia Co and KakaoBank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KakaoBank Corp and Nasmedia 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 Nasmedia Co are associated (or correlated) with KakaoBank Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KakaoBank Corp has no effect on the direction of Nasmedia i.e., Nasmedia and KakaoBank Corp go up and down completely randomly.
Pair Corralation between Nasmedia and KakaoBank Corp
Assuming the 90 days trading horizon Nasmedia Co is expected to generate 0.81 times more return on investment than KakaoBank Corp. However, Nasmedia Co is 1.24 times less risky than KakaoBank Corp. It trades about -0.01 of its potential returns per unit of risk. KakaoBank Corp is currently generating about -0.28 per unit of risk. If you would invest 1,425,233 in Nasmedia Co on October 25, 2024 and sell it today you would lose (4,233) from holding Nasmedia Co or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Nasmedia Co vs. KakaoBank Corp
Performance |
| Timeline |
| Nasmedia |
| KakaoBank Corp |
Nasmedia and KakaoBank Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasmedia and KakaoBank Corp
The main advantage of trading using opposite Nasmedia and KakaoBank Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasmedia position performs unexpectedly, KakaoBank Corp 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 KakaoBank Corp will offset losses from the drop in KakaoBank Corp's long position.| Nasmedia vs. Busan Industrial Co | Nasmedia vs. Busan Ind | Nasmedia vs. RPBio Inc | Nasmedia vs. Finebesteel |
| KakaoBank Corp vs. T3 Entertainment Co | KakaoBank Corp vs. Nasmedia Co | KakaoBank Corp vs. DC Media Co | KakaoBank Corp vs. Kukdong Oil Chemicals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |