Correlation Between KT and Radius Global
Can any of the company-specific risk be diversified away by investing in both KT and Radius Global 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 Radius Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Corporation and Radius Global Infrastructure, you can compare the effects of market volatilities on KT and Radius Global 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 Radius Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and Radius Global.
Diversification Opportunities for KT and Radius Global
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KT and Radius is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and Radius Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radius Global Infras 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 Radius Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radius Global Infras has no effect on the direction of KT i.e., KT and Radius Global go up and down completely randomly.
Pair Corralation between KT and Radius Global
If you would invest 1,562 in KT Corporation on November 3, 2024 and sell it today you would earn a total of 171.00 from holding KT Corporation or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
KT Corp. vs. Radius Global Infrastructure
Performance |
| Timeline |
| KT Corporation |
| Radius Global Infras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KT and Radius Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT and Radius Global
The main advantage of trading using opposite KT and Radius Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT position performs unexpectedly, Radius Global 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 Radius Global will offset losses from the drop in Radius Global's long position.| KT vs. PLDT Inc ADR | KT vs. Telefonica Brasil SA | KT vs. TIM Participacoes SA | KT vs. Telkom Indonesia Tbk |
| Radius Global vs. Access Power Co | Radius Global vs. PLDT Inc ADR | Radius Global vs. ATN International | Radius Global vs. KT Corporation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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