Correlation Between Daehan Synthetic and KG Eco
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and KG Eco 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 KG Eco 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 KG Eco Technology, you can compare the effects of market volatilities on Daehan Synthetic and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and KG Eco.
Diversification Opportunities for Daehan Synthetic and KG Eco
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Daehan and 151860 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and KG Eco go up and down completely randomly.
Pair Corralation between Daehan Synthetic and KG Eco
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to under-perform the KG Eco. But the stock apears to be less risky and, when comparing its historical volatility, Daehan Synthetic Fiber is 2.34 times less risky than KG Eco. The stock trades about -0.06 of its potential returns per unit of risk. The KG Eco Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 508,000 in KG Eco Technology on January 23, 2025 and sell it today you would earn a total of 26,000 from holding KG Eco Technology or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daehan Synthetic Fiber vs. KG Eco Technology
Performance |
| Timeline |
| Daehan Synthetic Fiber |
| KG Eco Technology |
Daehan Synthetic and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daehan Synthetic and KG Eco
The main advantage of trading using opposite Daehan Synthetic and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco's long position.| Daehan Synthetic vs. Shinsegae Information Communication | Daehan Synthetic vs. Nable Communications | Daehan Synthetic vs. KT Submarine Telecom | Daehan Synthetic vs. SK Telecom Co |
| KG Eco vs. Korea New Network | KG Eco vs. Busan Industrial Co | KG Eco vs. Finebesteel | KG Eco vs. Shinhan Inverse WTI |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |