Correlation Between KT and Cellcom Israel
Can any of the company-specific risk be diversified away by investing in both KT and Cellcom Israel 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 Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Corporation and Cellcom Israel, you can compare the effects of market volatilities on KT and Cellcom Israel 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 Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and Cellcom Israel.
Diversification Opportunities for KT and Cellcom Israel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KT and Cellcom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and Cellcom Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellcom Israel 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 Cellcom Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellcom Israel has no effect on the direction of KT i.e., KT and Cellcom Israel go up and down completely randomly.
Pair Corralation between KT and Cellcom Israel
If you would invest 1,115 in KT Corporation on January 26, 2024 and sell it today you would earn a total of 150.00 from holding KT Corporation or generate 13.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
KT Corp. vs. Cellcom Israel
Performance |
Timeline |
KT Corporation |
Cellcom Israel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KT and Cellcom Israel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KT and Cellcom Israel
The main advantage of trading using opposite KT and Cellcom Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT position performs unexpectedly, Cellcom Israel 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 Cellcom Israel will offset losses from the drop in Cellcom Israel's long position.The idea behind KT Corporation and Cellcom Israel 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.Cellcom Israel vs. Rocky Brands | Cellcom Israel vs. Visionary Education Technology | Cellcom Israel vs. IPG Photonics | Cellcom Israel vs. NETGEAR |
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.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |