Correlation Between Tamul Multimedia and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and KIWI Media 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 Tamul Multimedia and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamul Multimedia Co and KIWI Media Group, you can compare the effects of market volatilities on Tamul Multimedia and KIWI Media 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 Tamul Multimedia with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and KIWI Media.
Diversification Opportunities for Tamul Multimedia and KIWI Media
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tamul and KIWI is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Tamul Multimedia 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 Tamul Multimedia Co are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and KIWI Media go up and down completely randomly.
Pair Corralation between Tamul Multimedia and KIWI Media
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to generate 0.63 times more return on investment than KIWI Media. However, Tamul Multimedia Co is 1.59 times less risky than KIWI Media. It trades about -0.16 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.13 per unit of risk. If you would invest 798,000 in Tamul Multimedia Co on August 25, 2024 and sell it today you would lose (366,500) from holding Tamul Multimedia Co or give up 45.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. KIWI Media Group
Performance |
| Timeline |
| Tamul Multimedia |
| KIWI Media Group |
Tamul Multimedia and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and KIWI Media
The main advantage of trading using opposite Tamul Multimedia and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. People Technology | Tamul Multimedia vs. SIMMTECH Co | Tamul Multimedia vs. Haesung DS Co |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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