Correlation Between Daishin Information and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Samyung Trading 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 Samyung Trading 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 Samyung Trading Co, you can compare the effects of market volatilities on Daishin Information and Samyung Trading 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 Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Samyung Trading.
Diversification Opportunities for Daishin Information and Samyung Trading
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daishin and Samyung is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading 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 Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Daishin Information i.e., Daishin Information and Samyung Trading go up and down completely randomly.
Pair Corralation between Daishin Information and Samyung Trading
Assuming the 90 days trading horizon Daishin Information Communications is expected to under-perform the Samyung Trading. In addition to that, Daishin Information is 2.34 times more volatile than Samyung Trading Co. It trades about -0.12 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about -0.05 per unit of volatility. If you would invest 1,357,000 in Samyung Trading Co on September 2, 2024 and sell it today you would lose (57,000) from holding Samyung Trading Co or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Samyung Trading Co
Performance |
| Timeline |
| Daishin Information |
| Samyung Trading |
Daishin Information and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Samyung Trading
The main advantage of trading using opposite Daishin Information and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind | Daishin Information vs. Mirae Asset Daewoo | Daishin Information vs. Finebesteel |
| Samyung Trading vs. AptaBio Therapeutics | Samyung Trading vs. Daewoo SBI SPAC | Samyung Trading vs. Dream Security co | Samyung Trading vs. Microfriend |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |