Correlation Between Daewoo Electronic and Iljin HySolus
Can any of the company-specific risk be diversified away by investing in both Daewoo Electronic and Iljin HySolus 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 Daewoo Electronic and Iljin HySolus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo Electronic Components and Iljin HySolus Co, you can compare the effects of market volatilities on Daewoo Electronic and Iljin HySolus 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 Daewoo Electronic with a short position of Iljin HySolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo Electronic and Iljin HySolus.
Diversification Opportunities for Daewoo Electronic and Iljin HySolus
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daewoo and Iljin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo Electronic Components and Iljin HySolus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin HySolus and Daewoo Electronic 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 Daewoo Electronic Components are associated (or correlated) with Iljin HySolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin HySolus has no effect on the direction of Daewoo Electronic i.e., Daewoo Electronic and Iljin HySolus go up and down completely randomly.
Pair Corralation between Daewoo Electronic and Iljin HySolus
If you would invest 100,300 in Daewoo Electronic Components on October 25, 2024 and sell it today you would earn a total of 1,200 from holding Daewoo Electronic Components or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Daewoo Electronic Components vs. Iljin HySolus Co
Performance |
| Timeline |
| Daewoo Electronic |
| Iljin HySolus |
Daewoo Electronic and Iljin HySolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo Electronic and Iljin HySolus
The main advantage of trading using opposite Daewoo Electronic and Iljin HySolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo Electronic position performs unexpectedly, Iljin HySolus 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 Iljin HySolus will offset losses from the drop in Iljin HySolus' long position.| Daewoo Electronic vs. Samsung Electronics Co | Daewoo Electronic vs. Samsung Electronics Co | Daewoo Electronic vs. LG Energy Solution | Daewoo Electronic vs. SK Hynix |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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