Correlation Between Leaders Technology and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Leaders Technology and Duksan Hi 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 Leaders Technology and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leaders Technology Investment and Duksan Hi Metal, you can compare the effects of market volatilities on Leaders Technology and Duksan Hi 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 Leaders Technology with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaders Technology and Duksan Hi.
Diversification Opportunities for Leaders Technology and Duksan Hi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leaders and Duksan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Leaders Technology Investment and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Leaders 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 Leaders Technology Investment are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Leaders Technology i.e., Leaders Technology and Duksan Hi go up and down completely randomly.
Pair Corralation between Leaders Technology and Duksan Hi
Assuming the 90 days trading horizon Leaders Technology Investment is expected to under-perform the Duksan Hi. In addition to that, Leaders Technology is 1.54 times more volatile than Duksan Hi Metal. It trades about -0.04 of its total potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.01 per unit of volatility. If you would invest 587,000 in Duksan Hi Metal on November 8, 2024 and sell it today you would lose (201,500) from holding Duksan Hi Metal or give up 34.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.87% |
| Values | Daily Returns |
Leaders Technology Investment vs. Duksan Hi Metal
Performance |
| Timeline |
| Leaders Technology |
| Duksan Hi Metal |
Leaders Technology and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaders Technology and Duksan Hi
The main advantage of trading using opposite Leaders Technology and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaders Technology position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Leaders Technology vs. Daol Investment Securities | Leaders Technology vs. DB Financial Investment | Leaders Technology vs. Nh Investment And | Leaders Technology vs. KTB Investment Securities |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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