Correlation Between Daeduck Electronics and FoodNamoo
Can any of the company-specific risk be diversified away by investing in both Daeduck Electronics and FoodNamoo 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 FoodNamoo 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 FoodNamoo, you can compare the effects of market volatilities on Daeduck Electronics and FoodNamoo 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 FoodNamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daeduck Electronics and FoodNamoo.
Diversification Opportunities for Daeduck Electronics and FoodNamoo
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Daeduck and FoodNamoo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Daeduck Electronics Co and FoodNamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FoodNamoo 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 FoodNamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FoodNamoo has no effect on the direction of Daeduck Electronics i.e., Daeduck Electronics and FoodNamoo go up and down completely randomly.
Pair Corralation between Daeduck Electronics and FoodNamoo
Assuming the 90 days trading horizon Daeduck Electronics Co is expected to generate 0.33 times more return on investment than FoodNamoo. However, Daeduck Electronics Co is 2.99 times less risky than FoodNamoo. It trades about 0.2 of its potential returns per unit of risk. FoodNamoo is currently generating about -0.4 per unit of risk. If you would invest 661,000 in Daeduck Electronics Co on October 13, 2024 and sell it today you would earn a total of 18,000 from holding Daeduck Electronics Co or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daeduck Electronics Co vs. FoodNamoo
Performance |
| Timeline |
| Daeduck Electronics |
| FoodNamoo |
Daeduck Electronics and FoodNamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daeduck Electronics and FoodNamoo
The main advantage of trading using opposite Daeduck Electronics and FoodNamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daeduck Electronics position performs unexpectedly, FoodNamoo 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 FoodNamoo will offset losses from the drop in FoodNamoo's long position.| Daeduck Electronics vs. Ssangyong Information Communication | Daeduck Electronics vs. Duksan Hi Metal | Daeduck Electronics vs. PJ Metal Co | Daeduck Electronics vs. Kbi Metal Co |
| FoodNamoo vs. Heungkuk Metaltech CoLtd | FoodNamoo vs. LG Household Healthcare | FoodNamoo vs. Air Busan Co | FoodNamoo vs. Youngsin Metal Industrial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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