Correlation Between KT Medical and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both KT Medical and AAPICO Hitech 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 Medical and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Medical Service and AAPICO Hitech Public, you can compare the effects of market volatilities on KT Medical and AAPICO Hitech 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 Medical with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Medical and AAPICO Hitech.
Diversification Opportunities for KT Medical and AAPICO Hitech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KTMS and AAPICO is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KT Medical Service and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public and KT Medical 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 Medical Service are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of KT Medical i.e., KT Medical and AAPICO Hitech go up and down completely randomly.
Pair Corralation between KT Medical and AAPICO Hitech
Assuming the 90 days trading horizon KT Medical Service is expected to under-perform the AAPICO Hitech. In addition to that, KT Medical is 1.67 times more volatile than AAPICO Hitech Public. It trades about -0.14 of its total potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.07 per unit of volatility. If you would invest 1,430 in AAPICO Hitech Public on November 27, 2024 and sell it today you would lose (40.00) from holding AAPICO Hitech Public or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Medical Service vs. AAPICO Hitech Public
Performance |
| Timeline |
| KT Medical Service |
| AAPICO Hitech Public |
KT Medical and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Medical and AAPICO Hitech
The main advantage of trading using opposite KT Medical and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Medical position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| KT Medical vs. DTC Enterprise PCL | KT Medical vs. Yong Concrete PCL | KT Medical vs. Make To Win | KT Medical vs. Aurora Design PCL |
| AAPICO Hitech vs. S Hotels and | AAPICO Hitech vs. Asia Hotel Public | AAPICO Hitech vs. MFC Asset Management | AAPICO Hitech vs. Laguna Resorts Hotels |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |