Correlation Between Daelim Trading and HuMC
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and HuMC 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 HuMC 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 HuMC Co, you can compare the effects of market volatilities on Daelim Trading and HuMC 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 HuMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and HuMC.
Diversification Opportunities for Daelim Trading and HuMC
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and HuMC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and HuMC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HuMC 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 HuMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HuMC has no effect on the direction of Daelim Trading i.e., Daelim Trading and HuMC go up and down completely randomly.
Pair Corralation between Daelim Trading and HuMC
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the HuMC. But the stock apears to be less risky and, when comparing its historical volatility, Daelim Trading Co is 1.25 times less risky than HuMC. The stock trades about -0.03 of its potential returns per unit of risk. The HuMC Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 104,600 in HuMC Co on October 14, 2024 and sell it today you would lose (3,400) from holding HuMC Co or give up 3.25% 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. HuMC Co
Performance |
| Timeline |
| Daelim Trading |
| HuMC |
Daelim Trading and HuMC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and HuMC
The main advantage of trading using opposite Daelim Trading and HuMC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, HuMC 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 HuMC will offset losses from the drop in HuMC's long position.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
| HuMC vs. Stic Investments | HuMC vs. Daelim Trading Co | HuMC vs. Pureun Mutual Savings | HuMC vs. Coloray International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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