Correlation Between Daelim Trading and InfoBank
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and InfoBank 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 InfoBank 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 InfoBank, you can compare the effects of market volatilities on Daelim Trading and InfoBank 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 InfoBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and InfoBank.
Diversification Opportunities for Daelim Trading and InfoBank
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daelim and InfoBank is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and InfoBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfoBank 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 InfoBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfoBank has no effect on the direction of Daelim Trading i.e., Daelim Trading and InfoBank go up and down completely randomly.
Pair Corralation between Daelim Trading and InfoBank
Assuming the 90 days trading horizon Daelim Trading is expected to generate 3.62 times less return on investment than InfoBank. But when comparing it to its historical volatility, Daelim Trading Co is 1.83 times less risky than InfoBank. It trades about 0.07 of its potential returns per unit of risk. InfoBank is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 597,000 in InfoBank on September 1, 2024 and sell it today you would earn a total of 87,000 from holding InfoBank or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. InfoBank
Performance |
| Timeline |
| Daelim Trading |
| InfoBank |
Daelim Trading and InfoBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and InfoBank
The main advantage of trading using opposite Daelim Trading and InfoBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, InfoBank 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 InfoBank will offset losses from the drop in InfoBank's long position.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
| InfoBank vs. Dongsin Engineering Construction | InfoBank vs. Doosan Fuel Cell | InfoBank vs. Daishin Balance 1 | InfoBank 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |