Correlation Between Daehan Synthetic and Pungguk Ethanol
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and Pungguk Ethanol 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 Daehan Synthetic and Pungguk Ethanol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daehan Synthetic Fiber and Pungguk Ethanol Industrial, you can compare the effects of market volatilities on Daehan Synthetic and Pungguk Ethanol 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 Daehan Synthetic with a short position of Pungguk Ethanol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and Pungguk Ethanol.
Diversification Opportunities for Daehan Synthetic and Pungguk Ethanol
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daehan and Pungguk is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and Pungguk Ethanol Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pungguk Ethanol Indu and Daehan Synthetic 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 Daehan Synthetic Fiber are associated (or correlated) with Pungguk Ethanol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pungguk Ethanol Indu has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and Pungguk Ethanol go up and down completely randomly.
Pair Corralation between Daehan Synthetic and Pungguk Ethanol
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to generate 0.81 times more return on investment than Pungguk Ethanol. However, Daehan Synthetic Fiber is 1.24 times less risky than Pungguk Ethanol. It trades about 0.04 of its potential returns per unit of risk. Pungguk Ethanol Industrial is currently generating about -0.03 per unit of risk. If you would invest 10,335,900 in Daehan Synthetic Fiber on September 4, 2024 and sell it today you would earn a total of 1,314,100 from holding Daehan Synthetic Fiber or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daehan Synthetic Fiber vs. Pungguk Ethanol Industrial
Performance |
| Timeline |
| Daehan Synthetic Fiber |
| Pungguk Ethanol Indu |
Daehan Synthetic and Pungguk Ethanol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daehan Synthetic and Pungguk Ethanol
The main advantage of trading using opposite Daehan Synthetic and Pungguk Ethanol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, Pungguk Ethanol 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 Pungguk Ethanol will offset losses from the drop in Pungguk Ethanol's long position.| Daehan Synthetic vs. LG Display Co | Daehan Synthetic vs. Sangsin Energy Display | Daehan Synthetic vs. Okins Electronics Co | Daehan Synthetic vs. Visang Education |
| Pungguk Ethanol vs. Tae Kyung Chemical | Pungguk Ethanol vs. Kukdong Oil Chemicals | Pungguk Ethanol vs. Miwon Chemical | Pungguk Ethanol vs. Daehan Synthetic Fiber |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |