Correlation Between Cots Technology and KakaoBank Corp
Can any of the company-specific risk be diversified away by investing in both Cots Technology and KakaoBank Corp 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 Cots Technology and KakaoBank Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cots Technology Co and KakaoBank Corp, you can compare the effects of market volatilities on Cots Technology and KakaoBank Corp 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 Cots Technology with a short position of KakaoBank Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cots Technology and KakaoBank Corp.
Diversification Opportunities for Cots Technology and KakaoBank Corp
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cots and KakaoBank is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cots Technology Co and KakaoBank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KakaoBank Corp and Cots Technology 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 Cots Technology Co are associated (or correlated) with KakaoBank Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KakaoBank Corp has no effect on the direction of Cots Technology i.e., Cots Technology and KakaoBank Corp go up and down completely randomly.
Pair Corralation between Cots Technology and KakaoBank Corp
Assuming the 90 days trading horizon Cots Technology Co is expected to generate 1.81 times more return on investment than KakaoBank Corp. However, Cots Technology is 1.81 times more volatile than KakaoBank Corp. It trades about 0.03 of its potential returns per unit of risk. KakaoBank Corp is currently generating about -0.01 per unit of risk. If you would invest 1,387,000 in Cots Technology Co on September 12, 2024 and sell it today you would earn a total of 61,000 from holding Cots Technology Co or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cots Technology Co vs. KakaoBank Corp
Performance |
| Timeline |
| Cots Technology |
| KakaoBank Corp |
Cots Technology and KakaoBank Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cots Technology and KakaoBank Corp
The main advantage of trading using opposite Cots Technology and KakaoBank Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cots Technology position performs unexpectedly, KakaoBank Corp 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 KakaoBank Corp will offset losses from the drop in KakaoBank Corp's long position.| Cots Technology vs. Samsung Electronics Co | Cots Technology vs. Samsung Electronics Co | Cots Technology vs. LG Energy Solution | Cots Technology vs. SK Hynix |
| KakaoBank Corp vs. Daishin Information Communications | KakaoBank Corp vs. Dongbang Transport Logistics | KakaoBank Corp vs. SCI Information Service | KakaoBank Corp vs. Dongil Metal 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |