Correlation Between Daelim Industrial and Playgram
Can any of the company-specific risk be diversified away by investing in both Daelim Industrial and Playgram 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 Daelim Industrial and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Industrial Co and Playgram Co, you can compare the effects of market volatilities on Daelim Industrial and Playgram 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 Daelim Industrial with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Industrial and Playgram.
Diversification Opportunities for Daelim Industrial and Playgram
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and Playgram is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Industrial Co and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Daelim Industrial 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 Daelim Industrial Co are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Daelim Industrial i.e., Daelim Industrial and Playgram go up and down completely randomly.
Pair Corralation between Daelim Industrial and Playgram
Assuming the 90 days trading horizon Daelim Industrial Co is expected to under-perform the Playgram. But the stock apears to be less risky and, when comparing its historical volatility, Daelim Industrial Co is 3.33 times less risky than Playgram. The stock trades about -0.3 of its potential returns per unit of risk. The Playgram Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 36,500 in Playgram Co on September 3, 2024 and sell it today you would earn a total of 400.00 from holding Playgram Co or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Industrial Co vs. Playgram Co
Performance |
| Timeline |
| Daelim Industrial |
| Playgram |
Daelim Industrial and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Industrial and Playgram
The main advantage of trading using opposite Daelim Industrial and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Industrial position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Daelim Industrial vs. Samsung Electronics Co | Daelim Industrial vs. Samsung Electronics Co | Daelim Industrial vs. LG Energy Solution | Daelim Industrial vs. SK Hynix |
| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Hanwha Solutions | Playgram vs. Lotte Chemical Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |