Correlation Between ChipsMedia and KIWI Media
Can any of the company-specific risk be diversified away by investing in both ChipsMedia 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 ChipsMedia and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChipsMedia and KIWI Media Group, you can compare the effects of market volatilities on ChipsMedia 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 ChipsMedia with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChipsMedia and KIWI Media.
Diversification Opportunities for ChipsMedia and KIWI Media
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChipsMedia and KIWI is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ChipsMedia 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 ChipsMedia 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 ChipsMedia 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 ChipsMedia i.e., ChipsMedia and KIWI Media go up and down completely randomly.
Pair Corralation between ChipsMedia and KIWI Media
Assuming the 90 days trading horizon ChipsMedia is expected to generate 1.19 times more return on investment than KIWI Media. However, ChipsMedia is 1.19 times more volatile than KIWI Media Group. It trades about 0.06 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.1 per unit of risk. If you would invest 1,365,000 in ChipsMedia on August 27, 2024 and sell it today you would earn a total of 39,000 from holding ChipsMedia or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChipsMedia vs. KIWI Media Group
Performance |
| Timeline |
| ChipsMedia |
| KIWI Media Group |
ChipsMedia and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChipsMedia and KIWI Media
The main advantage of trading using opposite ChipsMedia and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChipsMedia 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.| ChipsMedia vs. Korea Real Estate | ChipsMedia vs. Korea Ratings Co | ChipsMedia vs. IQuest Co | ChipsMedia vs. Wonbang Tech 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |