Correlation Between Daelim Trading and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Kaonmedia 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 Kaonmedia 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 Kaonmedia Co, you can compare the effects of market volatilities on Daelim Trading and Kaonmedia 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 Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Kaonmedia.
Diversification Opportunities for Daelim Trading and Kaonmedia
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and Kaonmedia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia 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 Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Daelim Trading i.e., Daelim Trading and Kaonmedia go up and down completely randomly.
Pair Corralation between Daelim Trading and Kaonmedia
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate about the same return on investment as Kaonmedia Co. But, Daelim Trading Co is 1.13 times less risky than Kaonmedia. It trades about 0.07 of its potential returns per unit of risk. Kaonmedia Co is currently generating about 0.07 per unit of risk. If you would invest 311,564 in Kaonmedia Co on October 16, 2024 and sell it today you would earn a total of 6,436 from holding Kaonmedia Co or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Kaonmedia Co
Performance |
| Timeline |
| Daelim Trading |
| Kaonmedia |
Daelim Trading and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Kaonmedia
The main advantage of trading using opposite Daelim Trading and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Daelim Trading vs. Miwon Chemical | Daelim Trading vs. Namhae Chemical | Daelim Trading vs. Kukdong Oil Chemicals | Daelim Trading vs. Samsung Life Insurance |
| Kaonmedia vs. TS Investment Corp | Kaonmedia vs. NH Investment Securities | Kaonmedia vs. Daelim Trading Co | Kaonmedia vs. Atinum Investment Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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