Correlation Between Ilji Technology and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Ilji Technology and Daishin Balance 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 Ilji Technology and Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilji Technology Co and Daishin Balance 1, you can compare the effects of market volatilities on Ilji Technology and Daishin Balance 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 Ilji Technology with a short position of Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilji Technology and Daishin Balance.
Diversification Opportunities for Ilji Technology and Daishin Balance
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ilji and Daishin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ilji Technology Co and Daishin Balance 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance 1 and Ilji Technology 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 Ilji Technology Co are associated (or correlated) with Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance 1 has no effect on the direction of Ilji Technology i.e., Ilji Technology and Daishin Balance go up and down completely randomly.
Pair Corralation between Ilji Technology and Daishin Balance
Assuming the 90 days trading horizon Ilji Technology is expected to generate 1.38 times less return on investment than Daishin Balance. But when comparing it to its historical volatility, Ilji Technology Co is 2.23 times less risky than Daishin Balance. It trades about 0.3 of its potential returns per unit of risk. Daishin Balance 1 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 518,000 in Daishin Balance 1 on October 20, 2024 and sell it today you would earn a total of 69,000 from holding Daishin Balance 1 or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ilji Technology Co vs. Daishin Balance 1
Performance |
| Timeline |
| Ilji Technology |
| Daishin Balance 1 |
Ilji Technology and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilji Technology and Daishin Balance
The main advantage of trading using opposite Ilji Technology and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilji Technology position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Ilji Technology vs. Samsung Card Co | Ilji Technology vs. EBEST Investment Securities | Ilji Technology vs. Koh Young Technology | Ilji Technology vs. Hansol Chemica |
| Daishin Balance vs. Korea Real Estate | Daishin Balance vs. Korea Ratings Co | Daishin Balance vs. IQuest Co | Daishin Balance vs. Wonbang Tech 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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