Correlation Between T3 Entertainment and KTB Investment
Can any of the company-specific risk be diversified away by investing in both T3 Entertainment and KTB Investment 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 KTB Investment 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 KTB Investment Securities, you can compare the effects of market volatilities on T3 Entertainment and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of T3 Entertainment and KTB Investment.
Diversification Opportunities for T3 Entertainment and KTB Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 204610 and KTB is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding T3 Entertainment Co and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of T3 Entertainment i.e., T3 Entertainment and KTB Investment go up and down completely randomly.
Pair Corralation between T3 Entertainment and KTB Investment
Assuming the 90 days trading horizon T3 Entertainment Co is expected to generate 0.99 times more return on investment than KTB Investment. However, T3 Entertainment Co is 1.01 times less risky than KTB Investment. It trades about 0.07 of its potential returns per unit of risk. KTB Investment Securities is currently generating about -0.01 per unit of risk. If you would invest 124,600 in T3 Entertainment Co on October 24, 2024 and sell it today you would earn a total of 43,300 from holding T3 Entertainment Co or generate 34.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T3 Entertainment Co vs. KTB Investment Securities
Performance |
| Timeline |
| T3 Entertainment |
| KTB Investment Securities |
T3 Entertainment and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T3 Entertainment and KTB Investment
The main advantage of trading using opposite T3 Entertainment and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T3 Entertainment position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. LG Energy Solution | T3 Entertainment vs. SK Hynix |
| KTB Investment vs. T3 Entertainment Co | KTB Investment vs. ChipsMedia | KTB Investment vs. Lotte Data Communication | KTB Investment vs. MEDIANA CoLtd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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