Correlation Between G Bits and KSEC Intelligent

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both G Bits and KSEC Intelligent 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 G Bits and KSEC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G bits Network Technology and KSEC Intelligent Technology, you can compare the effects of market volatilities on G Bits and KSEC Intelligent 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 G Bits with a short position of KSEC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Bits and KSEC Intelligent.

Diversification Opportunities for G Bits and KSEC Intelligent

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between 603444 and KSEC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding G bits Network Technology and KSEC Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSEC Intelligent Tec and G Bits 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 G bits Network Technology are associated (or correlated) with KSEC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSEC Intelligent Tec has no effect on the direction of G Bits i.e., G Bits and KSEC Intelligent go up and down completely randomly.

Pair Corralation between G Bits and KSEC Intelligent

Assuming the 90 days trading horizon G bits Network Technology is expected to generate 1.34 times more return on investment than KSEC Intelligent. However, G Bits is 1.34 times more volatile than KSEC Intelligent Technology. It trades about 0.24 of its potential returns per unit of risk. KSEC Intelligent Technology is currently generating about -0.09 per unit of risk. If you would invest  19,835  in G bits Network Technology on September 26, 2024 and sell it today you would earn a total of  2,492  from holding G bits Network Technology or generate 12.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

G bits Network Technology  vs.  KSEC Intelligent Technology

 Performance 
       Timeline  
G bits Network 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in G bits Network Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, G Bits may actually be approaching a critical reversion point that can send shares even higher in January 2025.
KSEC Intelligent Tec 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in KSEC Intelligent Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, KSEC Intelligent sustained solid returns over the last few months and may actually be approaching a breakup point.

G Bits and KSEC Intelligent Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with G Bits and KSEC Intelligent

The main advantage of trading using opposite G Bits and KSEC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Bits position performs unexpectedly, KSEC Intelligent 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 KSEC Intelligent will offset losses from the drop in KSEC Intelligent's long position.
The idea behind G bits Network Technology and KSEC Intelligent Technology 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.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities