Correlation Between Array Digital and KT
Can any of the company-specific risk be diversified away by investing in both Array Digital and KT 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 Array Digital and KT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Array Digital Infrastructure and KT Corporation, you can compare the effects of market volatilities on Array Digital and KT 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 Array Digital with a short position of KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Array Digital and KT.
Diversification Opportunities for Array Digital and KT
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Array and KT is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Array Digital Infrastructure and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation and Array Digital 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 Array Digital Infrastructure are associated (or correlated) with KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of Array Digital i.e., Array Digital and KT go up and down completely randomly.
Pair Corralation between Array Digital and KT
Allowing for the 90-day total investment horizon Array Digital Infrastructure is expected to generate 1.32 times more return on investment than KT. However, Array Digital is 1.32 times more volatile than KT Corporation. It trades about 0.08 of its potential returns per unit of risk. KT Corporation is currently generating about 0.05 per unit of risk. If you would invest 4,880 in Array Digital Infrastructure on October 11, 2025 and sell it today you would earn a total of 328.00 from holding Array Digital Infrastructure or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Array Digital Infrastructure vs. KT Corp.
Performance |
| Timeline |
| Array Digital Infras |
| KT Corporation |
Array Digital and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Array Digital and KT
The main advantage of trading using opposite Array Digital and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Array Digital position performs unexpectedly, KT 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 KT will offset losses from the drop in KT's long position.| Array Digital vs. Telephone and Data | Array Digital vs. PLDT Inc | Array Digital vs. Liberty Global PLC | Array Digital vs. Tower One Wireless |
| KT vs. SK Telecom Co | KT vs. Liberty Broadband Srs | KT vs. Millicom International Cellular | KT vs. Lumen Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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