Correlation Between KT Submarine and Zinus

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

By analyzing existing cross correlation between KT Submarine Telecom and Zinus Inc, you can compare the effects of market volatilities on KT Submarine and Zinus 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 Submarine with a short position of Zinus. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Zinus.

Diversification Opportunities for KT Submarine and Zinus

-0.33

Correlation Coefficient

KT Submarine  Zinus

Very good diversification

The 3 months correlation between 060370 and Zinus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Zinus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinus Inc and KT Submarine 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 Submarine Telecom are associated (or correlated) with Zinus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinus Inc has no effect on the direction of KT Submarine i.e., KT Submarine and Zinus go up and down completely randomly.

Pair Corralation between KT Submarine and Zinus

Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 1.16 times more return on investment than Zinus. However, KT Submarine is 1.16 times more volatile than Zinus Inc. It trades about 0.08 of its potential returns per unit of risk. Zinus Inc is currently generating about 0.0 per unit of risk. If you would invest  540,000  in KT Submarine Telecom on October 11, 2024 and sell it today you would earn a total of  985,000  from holding KT Submarine Telecom or generate 182.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.81%
Values	Daily Returns

KT Submarine Telecom  vs.  Zinus Inc

KT Submarine Telecom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KT Submarine Telecom has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Zinus Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zinus Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zinus sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KT Submarine and Zinus

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

The idea behind KT Submarine Telecom and Zinus Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.