Correlation Between Daeduck Electronics and PJ Electronics
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics and PJ Electronics 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 Daeduck Electronics and PJ Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daeduck Electronics Co and PJ Electronics Co, you can compare the effects of market volatilities on Daeduck Electronics and PJ Electronics 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 Daeduck Electronics with a short position of PJ Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and PJ Electronics.
Diversification Opportunities for Daeduck Electronics and PJ Electronics
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daeduck and 006140 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and PJ Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Electronics and Daeduck Electronics 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 Daeduck Electronics Co are associated (or correlated) with PJ Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Electronics has no effect on the direction of Daeduck Electronics i.e., Daeduck Electronics and PJ Electronics go up and down completely randomly.
Pair Corralation between Daeduck Electronics and PJ Electronics
Assuming the 90 days trading horizon Daeduck Electronics is expected to generate 3.61 times less return on investment than PJ Electronics. But when comparing it to its historical volatility, Daeduck Electronics Co is 3.53 times less risky than PJ Electronics. It trades about 0.2 of its potential returns per unit of risk. PJ Electronics Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 530,000 in PJ Electronics Co on December 1, 2024 and sell it today you would earn a total of 67,000 from holding PJ Electronics Co or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. PJ Electronics Co
Performance |
| Timeline |
| Daeduck Electronics |
| PJ Electronics |
Daeduck Electronics and PJ Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and PJ Electronics
The main advantage of trading using opposite Daeduck Electronics and PJ Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics position performs unexpectedly, PJ Electronics 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 PJ Electronics will offset losses from the drop in PJ Electronics' long position.| Daeduck Electronics vs. Nam Hwa Construction | Daeduck Electronics vs. Tuksu Engineering ConstructionLtd | Daeduck Electronics vs. Ssangyong Information Communication | Daeduck Electronics vs. Dongwoo Farm To |
| PJ Electronics vs. Daou Technology | PJ Electronics vs. SK IE Technology | PJ Electronics vs. Global Standard Technology | PJ Electronics vs. MS Autotech CoLtd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |