Correlation Between KT Medical and Central Retail
Can any of the company-specific risk be diversified away by investing in both KT Medical and Central Retail 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 Central Retail 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 Central Retail, you can compare the effects of market volatilities on KT Medical and Central Retail 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 Central Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Medical and Central Retail.
Diversification Opportunities for KT Medical and Central Retail
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between KTMS and Central is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KT Medical Service and Central Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Retail 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 Central Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Retail has no effect on the direction of KT Medical i.e., KT Medical and Central Retail go up and down completely randomly.
Pair Corralation between KT Medical and Central Retail
Assuming the 90 days trading horizon KT Medical Service is expected to under-perform the Central Retail. In addition to that, KT Medical is 1.71 times more volatile than Central Retail. It trades about -0.11 of its total potential returns per unit of risk. Central Retail is currently generating about 0.19 per unit of volatility. If you would invest 3,175 in Central Retail on September 4, 2024 and sell it today you would earn a total of 275.00 from holding Central Retail or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Medical Service vs. Central Retail
Performance |
| Timeline |
| KT Medical Service |
| Central Retail |
KT Medical and Central Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Medical and Central Retail
The main advantage of trading using opposite KT Medical and Central Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Medical position performs unexpectedly, Central Retail 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 Central Retail will offset losses from the drop in Central Retail'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 |
| Central Retail vs. Sriracha Construction Public | Central Retail vs. Mena Transport Public | Central Retail vs. KT Medical Service | Central Retail vs. Hydrogen Freehold Leasehold |
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
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |