Correlation Between Beijing MediaLimited and KORIAN (KO2SG)
Can any of the company-specific risk be diversified away by investing in both Beijing MediaLimited and KORIAN (KO2SG) 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 Beijing MediaLimited and KORIAN (KO2SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Media and KORIAN, you can compare the effects of market volatilities on Beijing MediaLimited and KORIAN (KO2SG) 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 Beijing MediaLimited with a short position of KORIAN (KO2SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing MediaLimited and KORIAN (KO2SG).
Diversification Opportunities for Beijing MediaLimited and KORIAN (KO2SG)
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and KORIAN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Media and KORIAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORIAN (KO2SG) and Beijing MediaLimited 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 Beijing Media are associated (or correlated) with KORIAN (KO2SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORIAN (KO2SG) has no effect on the direction of Beijing MediaLimited i.e., Beijing MediaLimited and KORIAN (KO2SG) go up and down completely randomly.
Pair Corralation between Beijing MediaLimited and KORIAN (KO2SG)
Assuming the 90 days horizon Beijing Media is expected to under-perform the KORIAN (KO2SG). In addition to that, Beijing MediaLimited is 1.01 times more volatile than KORIAN. It trades about 0.0 of its total potential returns per unit of risk. KORIAN is currently generating about 0.05 per unit of volatility. If you would invest 172.00 in KORIAN on September 2, 2024 and sell it today you would earn a total of 13.00 from holding KORIAN or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Beijing Media vs. KORIAN
Performance |
| Timeline |
| Beijing MediaLimited |
| KORIAN (KO2SG) |
Beijing MediaLimited and KORIAN (KO2SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing MediaLimited and KORIAN (KO2SG)
The main advantage of trading using opposite Beijing MediaLimited and KORIAN (KO2SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing MediaLimited position performs unexpectedly, KORIAN (KO2SG) 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 KORIAN (KO2SG) will offset losses from the drop in KORIAN (KO2SG)'s long position.| Beijing MediaLimited vs. Haverty Furniture Companies | Beijing MediaLimited vs. MI Homes | Beijing MediaLimited vs. Addus HomeCare | Beijing MediaLimited vs. MHP Hotel AG |
| KORIAN (KO2SG) vs. EAT WELL INVESTMENT | KORIAN (KO2SG) vs. LIFEWAY FOODS | KORIAN (KO2SG) vs. CapitaLand Investment Limited | KORIAN (KO2SG) vs. New Residential 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |