Correlation Between LB Investment and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both LB Investment and Kisan Telecom 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 LB Investment and Kisan Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Investment and Kisan Telecom Co, you can compare the effects of market volatilities on LB Investment and Kisan Telecom 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 LB Investment with a short position of Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Investment and Kisan Telecom.
Diversification Opportunities for LB Investment and Kisan Telecom
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 309960 and Kisan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding LB Investment and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom and LB 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 LB Investment are associated (or correlated) with Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of LB Investment i.e., LB Investment and Kisan Telecom go up and down completely randomly.
Pair Corralation between LB Investment and Kisan Telecom
Assuming the 90 days trading horizon LB Investment is expected to under-perform the Kisan Telecom. In addition to that, LB Investment is 1.61 times more volatile than Kisan Telecom Co. It trades about -0.06 of its total potential returns per unit of risk. Kisan Telecom Co is currently generating about -0.06 per unit of volatility. If you would invest 180,400 in Kisan Telecom Co on October 17, 2024 and sell it today you would lose (3,100) from holding Kisan Telecom Co or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LB Investment vs. Kisan Telecom Co
Performance |
| Timeline |
| LB Investment |
| Kisan Telecom |
LB Investment and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Investment and Kisan Telecom
The main advantage of trading using opposite LB Investment and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Investment position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| LB Investment vs. Kbi Metal Co | LB Investment vs. Duksan Hi Metal | LB Investment vs. Shinhan Inverse Copper | LB Investment vs. Seoyon Topmetal Co |
| Kisan Telecom vs. Korea Investment Holdings | Kisan Telecom vs. LB Investment | Kisan Telecom vs. Mirai Semiconductors Co | Kisan Telecom vs. Coloray International Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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