Correlation Between T3 Entertainment and Kukdo Chemical
Can any of the company-specific risk be diversified away by investing in both T3 Entertainment and Kukdo Chemical 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 T3 Entertainment and Kukdo Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T3 Entertainment Co and Kukdo Chemical Co, you can compare the effects of market volatilities on T3 Entertainment and Kukdo Chemical 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 T3 Entertainment with a short position of Kukdo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of T3 Entertainment and Kukdo Chemical.
Diversification Opportunities for T3 Entertainment and Kukdo Chemical
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 204610 and Kukdo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding T3 Entertainment Co and Kukdo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdo Chemical and T3 Entertainment 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 T3 Entertainment Co are associated (or correlated) with Kukdo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdo Chemical has no effect on the direction of T3 Entertainment i.e., T3 Entertainment and Kukdo Chemical go up and down completely randomly.
Pair Corralation between T3 Entertainment and Kukdo Chemical
Assuming the 90 days trading horizon T3 Entertainment Co is expected to generate 1.74 times more return on investment than Kukdo Chemical. However, T3 Entertainment is 1.74 times more volatile than Kukdo Chemical Co. It trades about 0.15 of its potential returns per unit of risk. Kukdo Chemical Co is currently generating about -0.34 per unit of risk. If you would invest 133,800 in T3 Entertainment Co on September 1, 2024 and sell it today you would earn a total of 11,400 from holding T3 Entertainment Co or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T3 Entertainment Co vs. Kukdo Chemical Co
Performance |
| Timeline |
| T3 Entertainment |
| Kukdo Chemical |
T3 Entertainment and Kukdo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T3 Entertainment and Kukdo Chemical
The main advantage of trading using opposite T3 Entertainment and Kukdo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T3 Entertainment position performs unexpectedly, Kukdo Chemical 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 Kukdo Chemical will offset losses from the drop in Kukdo Chemical's long position.| T3 Entertainment vs. TJ media Co | T3 Entertainment vs. SV Investment | T3 Entertainment vs. YG Entertainment | T3 Entertainment vs. Korea Investment Holdings |
| Kukdo Chemical vs. Next Entertainment World | Kukdo Chemical vs. SK Chemicals Co | Kukdo Chemical vs. T3 Entertainment Co | Kukdo Chemical vs. YG Entertainment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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