Correlation Between Anterix and KT

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

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

Diversification Opportunities for Anterix and KT

-0.41

Correlation Coefficient

Anterix  KT

Very good diversification

The 3 months correlation between Anterix and KT is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation and Anterix 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 Anterix are associated (or correlated) with KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of Anterix i.e., Anterix and KT go up and down completely randomly.

Pair Corralation between Anterix and KT

Given the investment horizon of 90 days Anterix is expected to under-perform the KT. In addition to that, Anterix is 1.56 times more volatile than KT Corporation. It trades about -0.03 of its total potential returns per unit of risk. KT Corporation is currently generating about 0.03 per unit of volatility. If you would invest  1,442  in KT Corporation on August 18, 2024 and sell it today you would earn a total of  78.00  from holding KT Corporation or generate 5.41% return on investment over 90 days.

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

Anterix  vs.  KT Corp.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

KT Corporation

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KT Corporation are ranked lower than 4 (%) 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 December 2024.

Pair Trading with Anterix and KT

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

The idea behind Anterix and KT Corporation 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.