Correlation Between KOSES CoLtd and CTK
Can any of the company-specific risk be diversified away by investing in both KOSES CoLtd and CTK 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 KOSES CoLtd and CTK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOSES CoLtd and CTK Co, you can compare the effects of market volatilities on KOSES CoLtd and CTK 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 KOSES CoLtd with a short position of CTK. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOSES CoLtd and CTK.
Diversification Opportunities for KOSES CoLtd and CTK
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KOSES and CTK is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KOSES CoLtd and CTK Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTK Co and KOSES CoLtd 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 KOSES CoLtd are associated (or correlated) with CTK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTK Co has no effect on the direction of KOSES CoLtd i.e., KOSES CoLtd and CTK go up and down completely randomly.
Pair Corralation between KOSES CoLtd and CTK
Assuming the 90 days trading horizon KOSES CoLtd is expected to generate 4.6 times less return on investment than CTK. In addition to that, KOSES CoLtd is 1.37 times more volatile than CTK Co. It trades about 0.0 of its total potential returns per unit of risk. CTK Co is currently generating about 0.03 per unit of volatility. If you would invest 539,541 in CTK Co on August 30, 2024 and sell it today you would earn a total of 90,459 from holding CTK Co or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
KOSES CoLtd vs. CTK Co
Performance |
| Timeline |
| KOSES CoLtd |
| CTK Co |
KOSES CoLtd and CTK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOSES CoLtd and CTK
The main advantage of trading using opposite KOSES CoLtd and CTK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOSES CoLtd position performs unexpectedly, CTK 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 CTK will offset losses from the drop in CTK's long position.| KOSES CoLtd vs. LB Investment | KOSES CoLtd vs. EBEST Investment Securities | KOSES CoLtd vs. TS Investment Corp | KOSES CoLtd vs. Samick Musical Instruments |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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