Correlation Between KT and Millicom International
Can any of the company-specific risk be diversified away by investing in both KT and Millicom International 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 Millicom International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Corporation and Millicom International Cellular, you can compare the effects of market volatilities on KT and Millicom International 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 Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and Millicom International.
Diversification Opportunities for KT and Millicom International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KT and Millicom is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International 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 Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of KT i.e., KT and Millicom International go up and down completely randomly.
Pair Corralation between KT and Millicom International
Allowing for the 90-day total investment horizon KT is expected to generate 1.06 times less return on investment than Millicom International. But when comparing it to its historical volatility, KT Corporation is 1.88 times less risky than Millicom International. It trades about 0.29 of its potential returns per unit of risk. Millicom International Cellular is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,479 in Millicom International Cellular on November 9, 2024 and sell it today you would earn a total of 194.00 from holding Millicom International Cellular or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Corp. vs. Millicom International Cellula
Performance |
| Timeline |
| KT Corporation |
| Millicom International |
KT and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT and Millicom International
The main advantage of trading using opposite KT and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International's long position.| KT vs. PLDT Inc ADR | KT vs. Telefonica Brasil SA | KT vs. TIM Participacoes SA | KT vs. Telkom Indonesia Tbk |
| Millicom International vs. KT Corporation | Millicom International vs. Telkom Indonesia Tbk | Millicom International vs. SK Telecom Co | Millicom International vs. PLDT Inc ADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |