Correlation Between Narae Nanotech and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Narae Nanotech and KT Submarine 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 Narae Nanotech and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Narae Nanotech Corp and KT Submarine Telecom, you can compare the effects of market volatilities on Narae Nanotech and KT Submarine 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 Narae Nanotech with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Narae Nanotech and KT Submarine.
Diversification Opportunities for Narae Nanotech and KT Submarine
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Narae and 060370 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Narae Nanotech Corp and KT Submarine Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine Telecom and Narae Nanotech 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 Narae Nanotech Corp are associated (or correlated) with KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine Telecom has no effect on the direction of Narae Nanotech i.e., Narae Nanotech and KT Submarine go up and down completely randomly.
Pair Corralation between Narae Nanotech and KT Submarine
Assuming the 90 days trading horizon Narae Nanotech is expected to generate 1.92 times less return on investment than KT Submarine. In addition to that, Narae Nanotech is 1.43 times more volatile than KT Submarine Telecom. It trades about 0.09 of its total potential returns per unit of risk. KT Submarine Telecom is currently generating about 0.25 per unit of volatility. If you would invest 1,350,000 in KT Submarine Telecom on October 30, 2024 and sell it today you would earn a total of 402,000 from holding KT Submarine Telecom or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Narae Nanotech Corp vs. KT Submarine Telecom
Performance |
| Timeline |
| Narae Nanotech Corp |
| KT Submarine Telecom |
Narae Nanotech and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Narae Nanotech and KT Submarine
The main advantage of trading using opposite Narae Nanotech and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Narae Nanotech position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| Narae Nanotech vs. Ssangyong Information Communication | Narae Nanotech vs. Jin Air Co | Narae Nanotech vs. Tway Air Co | Narae Nanotech vs. Inzi Display CoLtd |
| KT Submarine vs. Pureun Mutual Savings | KT Submarine vs. CG Hi Tech | KT Submarine vs. Sangsangin Investment Securities | KT Submarine vs. Atinum Investment Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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