Correlation Between Playgram and Daehan Steel
Can any of the company-specific risk be diversified away by investing in both Playgram and Daehan Steel 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 Playgram and Daehan Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and Daehan Steel, you can compare the effects of market volatilities on Playgram and Daehan Steel 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 Playgram with a short position of Daehan Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and Daehan Steel.
Diversification Opportunities for Playgram and Daehan Steel
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playgram and Daehan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and Daehan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Steel and Playgram 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 Playgram Co are associated (or correlated) with Daehan Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Steel has no effect on the direction of Playgram i.e., Playgram and Daehan Steel go up and down completely randomly.
Pair Corralation between Playgram and Daehan Steel
Assuming the 90 days trading horizon Playgram Co is expected to under-perform the Daehan Steel. In addition to that, Playgram is 2.21 times more volatile than Daehan Steel. It trades about -0.02 of its total potential returns per unit of risk. Daehan Steel is currently generating about 0.05 per unit of volatility. If you would invest 1,091,933 in Daehan Steel on September 3, 2024 and sell it today you would earn a total of 459,067 from holding Daehan Steel or generate 42.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playgram Co vs. Daehan Steel
Performance |
| Timeline |
| Playgram |
| Daehan Steel |
Playgram and Daehan Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and Daehan Steel
The main advantage of trading using opposite Playgram and Daehan Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, Daehan Steel 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 Daehan Steel will offset losses from the drop in Daehan Steel's long position.| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Hanwha Solutions | Playgram vs. Lotte Chemical Corp |
| Daehan Steel vs. LG Chemicals | Daehan Steel vs. POSCO Holdings | Daehan Steel vs. Hanwha Solutions | Daehan Steel vs. Lotte Chemical Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |