Correlation Between KT and Array Digital
Can any of the company-specific risk be diversified away by investing in both KT and Array Digital 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 and Array Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Corporation and Array Digital Infrastructure, you can compare the effects of market volatilities on KT and Array Digital 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 with a short position of Array Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and Array Digital.
Diversification Opportunities for KT and Array Digital
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KT and Array is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and Array Digital Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Digital Infras and KT 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 Corporation are associated (or correlated) with Array Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Digital Infras has no effect on the direction of KT i.e., KT and Array Digital go up and down completely randomly.
Pair Corralation between KT and Array Digital
Allowing for the 90-day total investment horizon KT is expected to generate 1.86 times less return on investment than Array Digital. But when comparing it to its historical volatility, KT Corporation is 1.32 times less risky than Array Digital. It trades about 0.05 of its potential returns per unit of risk. Array Digital Infrastructure is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 |
KT Corp. vs. Array Digital Infrastructure
Performance |
| Timeline |
| KT Corporation |
| Array Digital Infras |
KT and Array Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT and Array Digital
The main advantage of trading using opposite KT and Array Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT position performs unexpectedly, Array Digital 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 Array Digital will offset losses from the drop in Array Digital's long position.| KT vs. SK Telecom Co | KT vs. Liberty Broadband Srs | KT vs. Millicom International Cellular | KT vs. Lumen Technologies |
| Array Digital vs. Telephone and Data | Array Digital vs. PLDT Inc | Array Digital vs. Liberty Global PLC | Array Digital vs. Tower One Wireless |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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