Correlation Between Daelim Trading and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on Daelim Trading and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Stic Investments.
Diversification Opportunities for Daelim Trading and Stic Investments
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daelim and Stic is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Daelim Trading i.e., Daelim Trading and Stic Investments go up and down completely randomly.
Pair Corralation between Daelim Trading and Stic Investments
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the Stic Investments. But the stock apears to be less risky and, when comparing its historical volatility, Daelim Trading Co is 1.16 times less risky than Stic Investments. The stock trades about -0.01 of its potential returns per unit of risk. The Stic Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 692,718 in Stic Investments on September 4, 2024 and sell it today you would earn a total of 166,282 from holding Stic Investments or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Daelim Trading Co vs. Stic Investments
Performance |
| Timeline |
| Daelim Trading |
| Stic Investments |
Daelim Trading and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Stic Investments
The main advantage of trading using opposite Daelim Trading and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Daelim Trading vs. MediaZen | Daelim Trading vs. SKONEC Entertainment Co | Daelim Trading vs. SM Entertainment Co | Daelim Trading vs. Barunson Entertainment Arts |
| Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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