Correlation Between Daishin Information and SH Energy
Can any of the company-specific risk be diversified away by investing in both Daishin Information and SH Energy 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 Daishin Information and SH Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and SH Energy Chemical, you can compare the effects of market volatilities on Daishin Information and SH Energy 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 Daishin Information with a short position of SH Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and SH Energy.
Diversification Opportunities for Daishin Information and SH Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daishin and 002360 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and SH Energy Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SH Energy Chemical and Daishin 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 Daishin Information Communications are associated (or correlated) with SH Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SH Energy Chemical has no effect on the direction of Daishin Information i.e., Daishin Information and SH Energy go up and down completely randomly.
Pair Corralation between Daishin Information and SH Energy
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 0.89 times more return on investment than SH Energy. However, Daishin Information Communications is 1.13 times less risky than SH Energy. It trades about 0.0 of its potential returns per unit of risk. SH Energy Chemical is currently generating about -0.03 per unit of risk. If you would invest 118,695 in Daishin Information Communications on October 27, 2024 and sell it today you would lose (14,495) from holding Daishin Information Communications or give up 12.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. SH Energy Chemical
Performance |
| Timeline |
| Daishin Information |
| SH Energy Chemical |
Daishin Information and SH Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and SH Energy
The main advantage of trading using opposite Daishin Information and SH Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, SH Energy 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 SH Energy will offset losses from the drop in SH Energy's long position.| Daishin Information vs. Settlebank | Daishin Information vs. SSR Inc | Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind |
| SH Energy vs. NICE Information Service | SH Energy vs. Samyung Trading Co | SH Energy vs. LG Household Healthcare | SH Energy vs. Daou Data 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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