Correlation Between Fine Besteel and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Fine Besteel 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 Fine Besteel and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and KIWI Media Group, you can compare the effects of market volatilities on Fine Besteel 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 Fine Besteel with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and KIWI Media.
Diversification Opportunities for Fine Besteel and KIWI Media
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and KIWI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel 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 Fine Besteel 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 Fine Besteel 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 Fine Besteel i.e., Fine Besteel and KIWI Media go up and down completely randomly.
Pair Corralation between Fine Besteel and KIWI Media
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.65 times more return on investment than KIWI Media. However, Fine Besteel is 1.65 times more volatile than KIWI Media Group. It trades about 0.25 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.06 per unit of risk. If you would invest 85,400 in Fine Besteel Co on August 25, 2024 and sell it today you would earn a total of 22,800 from holding Fine Besteel Co or generate 26.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. KIWI Media Group
Performance |
| Timeline |
| Fine Besteel |
| KIWI Media Group |
Fine Besteel and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and KIWI Media
The main advantage of trading using opposite Fine Besteel and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel 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.| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
| 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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