Correlation Between Taekwang Ind and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Taekwang Ind and Kaonmedia 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 Taekwang Ind and Kaonmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taekwang Ind and Kaonmedia Co, you can compare the effects of market volatilities on Taekwang Ind and Kaonmedia 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 Taekwang Ind with a short position of Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taekwang Ind and Kaonmedia.
Diversification Opportunities for Taekwang Ind and Kaonmedia
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Taekwang and Kaonmedia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Taekwang Ind and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia and Taekwang Ind 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 Taekwang Ind are associated (or correlated) with Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Taekwang Ind i.e., Taekwang Ind and Kaonmedia go up and down completely randomly.
Pair Corralation between Taekwang Ind and Kaonmedia
Assuming the 90 days trading horizon Taekwang Ind is expected to under-perform the Kaonmedia. But the stock apears to be less risky and, when comparing its historical volatility, Taekwang Ind is 2.23 times less risky than Kaonmedia. The stock trades about -0.05 of its potential returns per unit of risk. The Kaonmedia Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 347,500 in Kaonmedia Co on September 6, 2025 and sell it today you would earn a total of 133,000 from holding Kaonmedia Co or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Taekwang Ind vs. Kaonmedia Co
Performance |
| Timeline |
| Taekwang Ind |
| Kaonmedia |
Taekwang Ind and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taekwang Ind and Kaonmedia
The main advantage of trading using opposite Taekwang Ind and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taekwang Ind position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Taekwang Ind vs. LG Chemicals | Taekwang Ind vs. POSCO Holdings | Taekwang Ind vs. Hanwha Solutions | Taekwang Ind vs. Lotte Chemical Corp |
| Kaonmedia vs. DSC Investment | Kaonmedia vs. Samyung Trading Co | Kaonmedia vs. Worldex Industry Trading | Kaonmedia vs. Korea Information Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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