Correlation Between Asia Global and KT
Can any of the company-specific risk be diversified away by investing in both Asia Global and KT 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 Asia Global and KT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Global Crossing and KT Corporation, you can compare the effects of market volatilities on Asia Global and KT 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 Asia Global with a short position of KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Global and KT.
Diversification Opportunities for Asia Global and KT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asia and KT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asia Global Crossing and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation and Asia Global 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 Asia Global Crossing are associated (or correlated) with KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of Asia Global i.e., Asia Global and KT go up and down completely randomly.
Pair Corralation between Asia Global and KT
If you would invest 1,674 in KT Corporation on November 18, 2024 and sell it today you would earn a total of 36.00 from holding KT Corporation or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Asia Global Crossing vs. KT Corp.
Performance |
| Timeline |
| Asia Global Crossing |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| KT Corporation |
Asia Global and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Global and KT
The main advantage of trading using opposite Asia Global and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Global position performs unexpectedly, KT 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 KT will offset losses from the drop in KT's long position.| Asia Global vs. BCE Inc | Asia Global vs. Advanced Info Service | Asia Global vs. American Nortel Communications | Asia Global vs. Axiologix |
| KT vs. PLDT Inc ADR | KT vs. Telefonica Brasil SA | KT vs. TIM Participacoes SA | KT vs. Telkom Indonesia Tbk |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |