Correlation Between SeAH Besteel and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both SeAH Besteel and Daishin Balance 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 SeAH Besteel and Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Besteel Corp and Daishin Balance 1, you can compare the effects of market volatilities on SeAH Besteel and Daishin Balance 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 SeAH Besteel with a short position of Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Besteel and Daishin Balance.
Diversification Opportunities for SeAH Besteel and Daishin Balance
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeAH and Daishin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Besteel Corp and Daishin Balance 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance 1 and SeAH Besteel 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 SeAH Besteel Corp are associated (or correlated) with Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance 1 has no effect on the direction of SeAH Besteel i.e., SeAH Besteel and Daishin Balance go up and down completely randomly.
Pair Corralation between SeAH Besteel and Daishin Balance
Assuming the 90 days trading horizon SeAH Besteel Corp is expected to under-perform the Daishin Balance. But the stock apears to be less risky and, when comparing its historical volatility, SeAH Besteel Corp is 1.27 times less risky than Daishin Balance. The stock trades about -0.05 of its potential returns per unit of risk. The Daishin Balance 1 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 567,000 in Daishin Balance 1 on October 26, 2024 and sell it today you would earn a total of 1,000.00 from holding Daishin Balance 1 or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Besteel Corp vs. Daishin Balance 1
Performance |
| Timeline |
| SeAH Besteel Corp |
| Daishin Balance 1 |
SeAH Besteel and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Besteel and Daishin Balance
The main advantage of trading using opposite SeAH Besteel and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Besteel position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| SeAH Besteel vs. LG Display Co | SeAH Besteel vs. Alton Sports CoLtd | SeAH Besteel vs. Lotte Data Communication | SeAH Besteel vs. Sangsin Energy Display |
| Daishin Balance vs. Moonbae Steel | Daishin Balance vs. SeAH Besteel Corp | Daishin Balance vs. Shin Steel Co | Daishin Balance vs. Dong A Steel Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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