Correlation Between Daishin Information and Samil CoLtd
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Samil CoLtd 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 Samil CoLtd 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 Samil CoLtd, you can compare the effects of market volatilities on Daishin Information and Samil CoLtd 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 Samil CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Samil CoLtd.
Diversification Opportunities for Daishin Information and Samil CoLtd
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daishin and Samil is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Samil CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samil CoLtd 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 Samil CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samil CoLtd has no effect on the direction of Daishin Information i.e., Daishin Information and Samil CoLtd go up and down completely randomly.
Pair Corralation between Daishin Information and Samil CoLtd
Assuming the 90 days trading horizon Daishin Information Communications is expected to under-perform the Samil CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Daishin Information Communications is 1.14 times less risky than Samil CoLtd. The stock trades about -0.01 of its potential returns per unit of risk. The Samil CoLtd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 199,455 in Samil CoLtd on September 14, 2024 and sell it today you would earn a total of 86,545 from holding Samil CoLtd or generate 43.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Daishin Information Communicat vs. Samil CoLtd
Performance |
| Timeline |
| Daishin Information |
| Samil CoLtd |
Daishin Information and Samil CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Samil CoLtd
The main advantage of trading using opposite Daishin Information and Samil CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Samil CoLtd 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 Samil CoLtd will offset losses from the drop in Samil CoLtd's long position.| Daishin Information vs. Settlebank | Daishin Information vs. Solution Advanced Technology | Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind |
| Samil CoLtd vs. LG Household Healthcare | Samil CoLtd vs. Daishin Information Communications | Samil CoLtd vs. Dongil Metal Co | Samil CoLtd vs. Seoyon Topmetal 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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