Correlation Between Daelim Trading and Naver
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Naver 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 Naver 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 Naver, you can compare the effects of market volatilities on Daelim Trading and Naver 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 Naver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Naver.
Diversification Opportunities for Daelim Trading and Naver
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daelim and Naver is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Naver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naver 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 Naver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naver has no effect on the direction of Daelim Trading i.e., Daelim Trading and Naver go up and down completely randomly.
Pair Corralation between Daelim Trading and Naver
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate 1.13 times more return on investment than Naver. However, Daelim Trading is 1.13 times more volatile than Naver. It trades about -0.04 of its potential returns per unit of risk. Naver is currently generating about -0.26 per unit of risk. If you would invest 244,000 in Daelim Trading Co on January 18, 2025 and sell it today you would lose (6,000) from holding Daelim Trading Co or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Naver
Performance |
| Timeline |
| Daelim Trading |
| Naver |
Daelim Trading and Naver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Naver
The main advantage of trading using opposite Daelim Trading and Naver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Naver 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 Naver will offset losses from the drop in Naver's long position.| Daelim Trading vs. BNK Financial Group | Daelim Trading vs. DoubleU Games Co | Daelim Trading vs. Hanwha Life Insurance | Daelim Trading vs. KakaoBank Corp |
| Naver vs. Dongsin Engineering Construction | Naver vs. Doosan Fuel Cell | Naver vs. Daishin Balance 1 | Naver 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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