Correlation Between KT and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both KT and Consolidated Communications 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 KT and Consolidated Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Corporation and Consolidated Communications, you can compare the effects of market volatilities on KT and Consolidated Communications 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 KT with a short position of Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and Consolidated Communications.
Diversification Opportunities for KT and Consolidated Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KT and Consolidated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and Consolidated Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications and KT 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 KT Corporation are associated (or correlated) with Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of KT i.e., KT and Consolidated Communications go up and down completely randomly.
Pair Corralation between KT and Consolidated Communications
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 |
KT Corp. vs. Consolidated Communications
Performance |
| Timeline |
| KT Corporation |
| Consolidated Communications |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KT and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT and Consolidated Communications
The main advantage of trading using opposite KT and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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