Correlation Between KT and KORE Group

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

By analyzing existing cross correlation between KT Corporation and KORE Group Holdings, you can compare the effects of market volatilities on KT and KORE Group 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 KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT and KORE Group.

Diversification Opportunities for KT and KORE Group

0.36

Correlation Coefficient

KT  KORE Group

Weak diversification

The 3 months correlation between KT and KORE is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding KT Corp. and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings 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 KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of KT i.e., KT and KORE Group go up and down completely randomly.

Pair Corralation between KT and KORE Group

Allowing for the 90-day total investment horizon KT is expected to generate 3.67 times less return on investment than KORE Group. But when comparing it to its historical volatility, KT Corporation is 5.05 times less risky than KORE Group. It trades about 0.14 of its potential returns per unit of risk. KORE Group Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  190.00  in KORE Group Holdings on December 26, 2024 and sell it today you would earn a total of  60.00  from holding KORE Group Holdings or generate 31.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

KT Corp.  vs.  KORE Group Holdings

KT Corporation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KT Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, KT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

KORE Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KORE Group Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, KORE Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KT and KORE Group

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

The idea behind KT Corporation and KORE Group Holdings 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.