Correlation Between MS Autotech and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Kaonmedia 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 MS Autotech and Kaonmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Kaonmedia Co, you can compare the effects of market volatilities on MS Autotech and Kaonmedia 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 MS Autotech with a short position of Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Kaonmedia.
Diversification Opportunities for MS Autotech and Kaonmedia
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 123040 and Kaonmedia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia and MS Autotech 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 MS Autotech CoLtd are associated (or correlated) with Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of MS Autotech i.e., MS Autotech and Kaonmedia go up and down completely randomly.
Pair Corralation between MS Autotech and Kaonmedia
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to generate 0.58 times more return on investment than Kaonmedia. However, MS Autotech CoLtd is 1.71 times less risky than Kaonmedia. It trades about -0.04 of its potential returns per unit of risk. Kaonmedia Co is currently generating about -0.03 per unit of risk. If you would invest 451,036 in MS Autotech CoLtd on September 3, 2024 and sell it today you would lose (181,036) from holding MS Autotech CoLtd or give up 40.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Kaonmedia Co
Performance |
| Timeline |
| MS Autotech CoLtd |
| Kaonmedia |
MS Autotech and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Kaonmedia
The main advantage of trading using opposite MS Autotech and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| MS Autotech vs. EV Advanced Material | MS Autotech vs. Top Material Co | MS Autotech vs. Shinsegae Food | MS Autotech vs. Foodnamoo |
| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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