Correlation Between Kworld Computer and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Kworld Computer and Aker Technology 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 Kworld Computer and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kworld Computer Co and Aker Technology Co, you can compare the effects of market volatilities on Kworld Computer and Aker Technology 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 Kworld Computer with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kworld Computer and Aker Technology.
Diversification Opportunities for Kworld Computer and Aker Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kworld and Aker is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kworld Computer Co and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Kworld Computer 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 Kworld Computer Co are associated (or correlated) with Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Kworld Computer i.e., Kworld Computer and Aker Technology go up and down completely randomly.
Pair Corralation between Kworld Computer and Aker Technology
Assuming the 90 days trading horizon Kworld Computer Co is expected to generate 0.84 times more return on investment than Aker Technology. However, Kworld Computer Co is 1.19 times less risky than Aker Technology. It trades about -0.03 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.28 per unit of risk. If you would invest 3,310 in Kworld Computer Co on October 15, 2024 and sell it today you would lose (55.00) from holding Kworld Computer Co or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kworld Computer Co vs. Aker Technology Co
Performance |
| Timeline |
| Kworld Computer |
| Aker Technology |
Kworld Computer and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kworld Computer and Aker Technology
The main advantage of trading using opposite Kworld Computer and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kworld Computer position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Kworld Computer vs. Taiwan Mobile Co | Kworld Computer vs. Farglory FTZ Investment | Kworld Computer vs. Union Insurance Co | Kworld Computer vs. Tai Tung Communication |
| Aker Technology vs. Dimension Computer Technology | Aker Technology vs. Kworld Computer Co | Aker Technology vs. Great Computer | Aker Technology vs. Unitech Computer 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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