Correlation Between Daeduck Electronics and Industrial Bank
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics and Industrial Bank 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 Industrial Bank 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 Industrial Bank, you can compare the effects of market volatilities on Daeduck Electronics and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and Industrial Bank.
Diversification Opportunities for Daeduck Electronics and Industrial Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daeduck and Industrial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and Industrial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Daeduck Electronics i.e., Daeduck Electronics and Industrial Bank go up and down completely randomly.
Pair Corralation between Daeduck Electronics and Industrial Bank
If you would invest 672,000 in Daeduck Electronics Co on October 22, 2024 and sell it today you would earn a total of 7,000 from holding Daeduck Electronics Co or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Daeduck Electronics Co vs. Industrial Bank
Performance |
| Timeline |
| Daeduck Electronics |
| Industrial Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Daeduck Electronics and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and Industrial Bank
The main advantage of trading using opposite Daeduck Electronics and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Daeduck Electronics vs. Mobileleader CoLtd | Daeduck Electronics vs. Jin Air Co | Daeduck Electronics vs. Jeju Semiconductor Corp | Daeduck Electronics vs. Korea Information Communications |
| Industrial Bank vs. Daou Data Corp | Industrial Bank vs. Innowireless Co | Industrial Bank vs. Mirai Semiconductors Co | Industrial Bank vs. Insung Information 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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