Correlation Between Daehan Synthetic and Danal
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and Danal 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 Danal 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 Danal Co, you can compare the effects of market volatilities on Daehan Synthetic and Danal 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 Danal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and Danal.
Diversification Opportunities for Daehan Synthetic and Danal
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daehan and Danal is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and Danal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danal 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 Danal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danal has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and Danal go up and down completely randomly.
Pair Corralation between Daehan Synthetic and Danal
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to generate 0.49 times more return on investment than Danal. However, Daehan Synthetic Fiber is 2.04 times less risky than Danal. It trades about 0.04 of its potential returns per unit of risk. Danal Co is currently generating about -0.06 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daehan Synthetic Fiber vs. Danal Co
Performance |
| Timeline |
| Daehan Synthetic Fiber |
| Danal |
Daehan Synthetic and Danal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daehan Synthetic and Danal
The main advantage of trading using opposite Daehan Synthetic and Danal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, Danal 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 Danal will offset losses from the drop in Danal'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 |
| Danal vs. Hannong Chemicals | Danal vs. Coloray International Investment | Danal vs. Chin Yang Chemical | Danal vs. Hanwha InvestmentSecurities Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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