Correlation Between Daelim Trading and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Sung Bo 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 Trading and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and Sung Bo Chemicals, you can compare the effects of market volatilities on Daelim Trading and Sung Bo 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 Trading with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Sung Bo.
Diversification Opportunities for Daelim Trading and Sung Bo
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daelim and Sung is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals and Daelim Trading 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 Trading Co are associated (or correlated) with Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Daelim Trading i.e., Daelim Trading and Sung Bo go up and down completely randomly.
Pair Corralation between Daelim Trading and Sung Bo
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the Sung Bo. In addition to that, Daelim Trading is 1.91 times more volatile than Sung Bo Chemicals. It trades about -0.01 of its total potential returns per unit of risk. Sung Bo Chemicals is currently generating about 0.15 per unit of volatility. If you would invest 248,000 in Sung Bo Chemicals on October 30, 2024 and sell it today you would earn a total of 5,000 from holding Sung Bo Chemicals or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Sung Bo Chemicals
Performance |
| Timeline |
| Daelim Trading |
| Sung Bo Chemicals |
Daelim Trading and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Sung Bo
The main advantage of trading using opposite Daelim Trading and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.| Daelim Trading vs. Infinitt Healthcare Co | Daelim Trading vs. Lotte Chilsung Beverage | Daelim Trading vs. INFINITT Healthcare Co | Daelim Trading vs. LG Household Healthcare |
| Sung Bo vs. DB Insurance Co | Sung Bo vs. Pyung Hwa Industrial | Sung Bo vs. Korea Industrial Co | Sung Bo vs. Korean Air Lines |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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