Correlation Between Doosan and Korea New
Can any of the company-specific risk be diversified away by investing in both Doosan and Korea New 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 Doosan and Korea New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan and Korea New Network, you can compare the effects of market volatilities on Doosan and Korea New 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 Doosan with a short position of Korea New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan and Korea New.
Diversification Opportunities for Doosan and Korea New
Pay attention - limited upside
The 3 months correlation between Doosan and Korea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Doosan and Korea New Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea New Network and Doosan 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 Doosan are associated (or correlated) with Korea New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea New Network has no effect on the direction of Doosan i.e., Doosan and Korea New go up and down completely randomly.
Pair Corralation between Doosan and Korea New
If you would invest 91,845 in Korea New Network on September 14, 2024 and sell it today you would lose (2,745) from holding Korea New Network or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.26% |
| Values | Daily Returns |
Doosan vs. Korea New Network
Performance |
| Timeline |
| Doosan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Korea New Network |
Doosan and Korea New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan and Korea New
The main advantage of trading using opposite Doosan and Korea New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan position performs unexpectedly, Korea New 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 Korea New will offset losses from the drop in Korea New's long position.| Doosan vs. Lotte Chilsung Beverage | Doosan vs. TOPMATERIAL LTD | Doosan vs. Daewon Media Co | Doosan vs. Iljin Materials Co |
| Korea New vs. Settlebank | Korea New vs. Dgb Financial | Korea New vs. BIT Computer Co | Korea New vs. CG Hi Tech |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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