Correlation Between Techwing and KMH Hitech
Can any of the company-specific risk be diversified away by investing in both Techwing and KMH 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 Techwing and KMH Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techwing and KMH Hitech Co, you can compare the effects of market volatilities on Techwing and KMH 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 Techwing with a short position of KMH Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techwing and KMH Hitech.
Diversification Opportunities for Techwing and KMH Hitech
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Techwing and KMH is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Techwing and KMH Hitech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMH Hitech and Techwing 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 Techwing are associated (or correlated) with KMH Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMH Hitech has no effect on the direction of Techwing i.e., Techwing and KMH Hitech go up and down completely randomly.
Pair Corralation between Techwing and KMH Hitech
Assuming the 90 days trading horizon Techwing is expected to generate 2.66 times more return on investment than KMH Hitech. However, Techwing is 2.66 times more volatile than KMH Hitech Co. It trades about 0.3 of its potential returns per unit of risk. KMH Hitech Co is currently generating about -0.03 per unit of risk. If you would invest 2,920,000 in Techwing on August 14, 2025 and sell it today you would earn a total of 3,080,000 from holding Techwing or generate 105.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techwing vs. KMH Hitech Co
Performance |
| Timeline |
| Techwing |
| KMH Hitech |
Techwing and KMH Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techwing and KMH Hitech
The main advantage of trading using opposite Techwing and KMH Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techwing position performs unexpectedly, KMH 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 KMH Hitech will offset losses from the drop in KMH Hitech's long position.| Techwing vs. Samsung Electronics Co | Techwing vs. Samsung Electronics Co | Techwing vs. LG Energy Solution | Techwing vs. SK Hynix |
| KMH Hitech vs. Han Kook Steel | KMH Hitech vs. Wing Yip Food | KMH Hitech vs. Young Heung Iron | KMH Hitech vs. Organic Special Pet |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |