Correlation Between KT Hitel and AnterogenCoLtd

Can any of the company-specific risk be diversified away by investing in both KT Hitel and AnterogenCoLtd 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 Hitel and AnterogenCoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KT Hitel and AnterogenCoLtd, you can compare the effects of market volatilities on KT Hitel and AnterogenCoLtd 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 Hitel with a short position of AnterogenCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Hitel and AnterogenCoLtd.

Diversification Opportunities for KT Hitel and AnterogenCoLtd

0.17

Correlation Coefficient

KT Hitel  AnterogenCoLtd

Average diversification

The 3 months correlation between 036030 and AnterogenCoLtd is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding KT Hitel and AnterogenCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnterogenCoLtd and KT Hitel 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 Hitel are associated (or correlated) with AnterogenCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnterogenCoLtd has no effect on the direction of KT Hitel i.e., KT Hitel and AnterogenCoLtd go up and down completely randomly.

Pair Corralation between KT Hitel and AnterogenCoLtd

Assuming the 90 days trading horizon KT Hitel is expected to under-perform the AnterogenCoLtd. In addition to that, KT Hitel is 1.26 times more volatile than AnterogenCoLtd. It trades about -0.02 of its total potential returns per unit of risk. AnterogenCoLtd is currently generating about 0.09 per unit of volatility. If you would invest  1,513,000  in AnterogenCoLtd on September 2, 2024 and sell it today you would earn a total of  182,000  from holding AnterogenCoLtd or generate 12.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KT Hitel  vs.  AnterogenCoLtd

KT Hitel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KT Hitel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KT Hitel is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AnterogenCoLtd

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AnterogenCoLtd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AnterogenCoLtd sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KT Hitel and AnterogenCoLtd

The main advantage of trading using opposite KT Hitel and AnterogenCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Hitel position performs unexpectedly, AnterogenCoLtd 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 AnterogenCoLtd will offset losses from the drop in AnterogenCoLtd's long position.

The idea behind KT Hitel and AnterogenCoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.