Correlation Between Daelim Trading and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Jahwa Electron 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 Jahwa Electron 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 Jahwa Electron, you can compare the effects of market volatilities on Daelim Trading and Jahwa Electron 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 Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Jahwa Electron.
Diversification Opportunities for Daelim Trading and Jahwa Electron
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daelim and Jahwa is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron 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 Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Daelim Trading i.e., Daelim Trading and Jahwa Electron go up and down completely randomly.
Pair Corralation between Daelim Trading and Jahwa Electron
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate 0.74 times more return on investment than Jahwa Electron. However, Daelim Trading Co is 1.35 times less risky than Jahwa Electron. It trades about -0.02 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.02 per unit of risk. If you would invest 350,400 in Daelim Trading Co on September 23, 2024 and sell it today you would lose (84,900) from holding Daelim Trading Co or give up 24.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Jahwa Electron
Performance |
| Timeline |
| Daelim Trading |
| Jahwa Electron |
Daelim Trading and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Jahwa Electron
The main advantage of trading using opposite Daelim Trading and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Wonbang Tech Co | Daelim Trading vs. Busan Industrial Co | Daelim Trading vs. Busan Ind |
| Jahwa Electron vs. BooKook Steel Co | Jahwa Electron vs. InnoTherapy | Jahwa Electron vs. Osang Healthcare Co,Ltd | Jahwa Electron vs. Bookook Steel |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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