Correlation Between Daelim Trading and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and CS BEARING 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 CS BEARING 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 CS BEARING CoLtd, you can compare the effects of market volatilities on Daelim Trading and CS BEARING 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 CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and CS BEARING.
Diversification Opportunities for Daelim Trading and CS BEARING
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daelim and 297090 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd 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 CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Daelim Trading i.e., Daelim Trading and CS BEARING go up and down completely randomly.
Pair Corralation between Daelim Trading and CS BEARING
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the CS BEARING. But the stock apears to be less risky and, when comparing its historical volatility, Daelim Trading Co is 1.72 times less risky than CS BEARING. The stock trades about -0.07 of its potential returns per unit of risk. The CS BEARING CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 423,500 in CS BEARING CoLtd on September 13, 2024 and sell it today you would lose (5,500) from holding CS BEARING CoLtd or give up 1.3% 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. CS BEARING CoLtd
Performance |
| Timeline |
| Daelim Trading |
| CS BEARING CoLtd |
Daelim Trading and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and CS BEARING
The main advantage of trading using opposite Daelim Trading and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING's long position.| Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. Samsung Electronics Co | Daelim Trading vs. SK Hynix | Daelim Trading vs. POSCO Holdings |
| CS BEARING vs. Jeju Beer Co | CS BEARING vs. Bohae Brewery | CS BEARING vs. Guyoung Technology Co | CS BEARING vs. Woori Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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