Correlation Between Daelim Trading and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and EBEST Investment 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 EBEST Investment 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 EBEST Investment Securities, you can compare the effects of market volatilities on Daelim Trading and EBEST Investment 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 EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and EBEST Investment.
Diversification Opportunities for Daelim Trading and EBEST Investment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and EBEST is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Daelim Trading i.e., Daelim Trading and EBEST Investment go up and down completely randomly.
Pair Corralation between Daelim Trading and EBEST Investment
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate 1.75 times more return on investment than EBEST Investment. However, Daelim Trading is 1.75 times more volatile than EBEST Investment Securities. It trades about -0.07 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.38 per unit of risk. If you would invest 289,000 in Daelim Trading Co on September 3, 2024 and sell it today you would lose (11,500) from holding Daelim Trading Co or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. EBEST Investment Securities
Performance |
| Timeline |
| Daelim Trading |
| EBEST Investment Sec |
Daelim Trading and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and EBEST Investment
The main advantage of trading using opposite Daelim Trading and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, EBEST Investment 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Daelim Trading vs. Daishin Information Communications | Daelim Trading vs. Hana Financial | Daelim Trading vs. Automobile Pc | Daelim Trading vs. KakaoBank Corp |
| EBEST Investment vs. Worldex Industry Trading | EBEST Investment vs. Woori Technology Investment | EBEST Investment vs. SBI Investment KOREA | EBEST Investment vs. Lindeman Asia Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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