Correlation Between TS Investment and KIWI Media
Can any of the company-specific risk be diversified away by investing in both TS Investment 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 TS Investment and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TS Investment Corp and KIWI Media Group, you can compare the effects of market volatilities on TS Investment 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 TS Investment with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TS Investment and KIWI Media.
Diversification Opportunities for TS Investment and KIWI Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 246690 and KIWI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding TS Investment Corp 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 TS Investment 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 TS Investment Corp 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 TS Investment i.e., TS Investment and KIWI Media go up and down completely randomly.
Pair Corralation between TS Investment and KIWI Media
Assuming the 90 days trading horizon TS Investment Corp is expected to under-perform the KIWI Media. But the stock apears to be less risky and, when comparing its historical volatility, TS Investment Corp is 1.11 times less risky than KIWI Media. The stock trades about -0.2 of its potential returns per unit of risk. The KIWI Media Group is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 44,800 in KIWI Media Group on October 15, 2024 and sell it today you would lose (3,500) from holding KIWI Media Group or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TS Investment Corp vs. KIWI Media Group
Performance |
| Timeline |
| TS Investment Corp |
| KIWI Media Group |
TS Investment and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TS Investment and KIWI Media
The main advantage of trading using opposite TS Investment and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TS Investment 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.| TS Investment vs. SK Telecom Co | TS Investment vs. Korea Information Communications | TS Investment vs. Bosung Power Technology | TS Investment vs. Asia Technology Co |
| KIWI Media vs. Insung Information Co | KIWI Media vs. Koryo Credit Information | KIWI Media vs. Inzi Display CoLtd | KIWI Media vs. Alton Sports 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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