Correlation Between Seoyon Topmetal and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal 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 Seoyon Topmetal and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Duksan Hi Metal, you can compare the effects of market volatilities on Seoyon Topmetal 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 Seoyon Topmetal with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Duksan Hi.
Diversification Opportunities for Seoyon Topmetal and Duksan Hi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seoyon and Duksan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal Co 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 Seoyon Topmetal 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 Seoyon Topmetal Co 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 Seoyon Topmetal i.e., Seoyon Topmetal and Duksan Hi go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Duksan Hi
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Seoyon Topmetal Co is 1.09 times less risky than Duksan Hi. The stock trades about -0.1 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 397,000 in Duksan Hi Metal on September 14, 2024 and sell it today you would lose (25,500) from holding Duksan Hi Metal or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Seoyon Topmetal |
| Duksan Hi Metal |
Seoyon Topmetal and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Duksan Hi
The main advantage of trading using opposite Seoyon Topmetal and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal 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.| Seoyon Topmetal vs. Daou Data Corp | Seoyon Topmetal vs. Solution Advanced Technology | Seoyon Topmetal vs. Busan Industrial Co | Seoyon Topmetal vs. Busan Ind |
| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |