Correlation Between Ssangyong Information and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information and DAEDUCK 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 Ssangyong Information and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Ssangyong Information and DAEDUCK 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 Ssangyong Information with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and DAEDUCK ELECTRONICS.
Diversification Opportunities for Ssangyong Information and DAEDUCK ELECTRONICS
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssangyong and DAEDUCK is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and Ssangyong Information 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 Ssangyong Information Communication are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Ssangyong Information i.e., Ssangyong Information and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Ssangyong Information and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the DAEDUCK ELECTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.19 times less risky than DAEDUCK ELECTRONICS. The stock trades about -0.07 of its potential returns per unit of risk. The DAEDUCK ELECTRONICS CoLtd is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 799,000 in DAEDUCK ELECTRONICS CoLtd on October 29, 2024 and sell it today you would earn a total of 42,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Ssangyong Information |
| DAEDUCK ELECTRONICS CoLtd |
Ssangyong Information and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Ssangyong Information and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information position performs unexpectedly, DAEDUCK 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Ssangyong Information vs. Sejong Telecom | Ssangyong Information vs. Kisan Telecom Co | Ssangyong Information vs. Wireless Power Amplifier | Ssangyong Information vs. GS Retail Co |
| DAEDUCK ELECTRONICS vs. Hankook Furniture Co | DAEDUCK ELECTRONICS vs. Leaders Technology Investment | DAEDUCK ELECTRONICS vs. Daol Investment Securities | DAEDUCK ELECTRONICS vs. GS Retail 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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