Correlation Between KIWI Media and ChipsMedia

Can any of the company-specific risk be diversified away by investing in both KIWI Media and ChipsMedia 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 KIWI Media and ChipsMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KIWI Media Group and ChipsMedia, you can compare the effects of market volatilities on KIWI Media and ChipsMedia 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 KIWI Media with a short position of ChipsMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and ChipsMedia.

Diversification Opportunities for KIWI Media and ChipsMedia

-0.86

Correlation Coefficient

KIWI Media  ChipsMedia

Pay attention - limited upside

The 3 months correlation between KIWI and ChipsMedia is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and ChipsMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChipsMedia and KIWI Media 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 KIWI Media Group are associated (or correlated) with ChipsMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChipsMedia has no effect on the direction of KIWI Media i.e., KIWI Media and ChipsMedia go up and down completely randomly.

Pair Corralation between KIWI Media and ChipsMedia

Assuming the 90 days trading horizon KIWI Media Group is expected to under-perform the ChipsMedia. In addition to that, KIWI Media is 1.33 times more volatile than ChipsMedia. It trades about -0.13 of its total potential returns per unit of risk. ChipsMedia is currently generating about 0.15 per unit of volatility. If you would invest  1,347,923  in ChipsMedia on November 29, 2024 and sell it today you would earn a total of  525,077  from holding ChipsMedia or generate 38.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

KIWI Media Group  vs.  ChipsMedia

KIWI Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days KIWI Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ChipsMedia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ChipsMedia are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ChipsMedia sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KIWI Media and ChipsMedia

The main advantage of trading using opposite KIWI Media and ChipsMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, ChipsMedia 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 ChipsMedia will offset losses from the drop in ChipsMedia's long position.

The idea behind KIWI Media Group and ChipsMedia 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.