Correlation Between Daishin Information and SK Holdings
Can any of the company-specific risk be diversified away by investing in both Daishin Information and SK Holdings 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 SK Holdings 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 SK Holdings Co, you can compare the effects of market volatilities on Daishin Information and SK Holdings 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 SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and SK Holdings.
Diversification Opportunities for Daishin Information and SK Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daishin and 034730 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Holdings 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 SK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Holdings has no effect on the direction of Daishin Information i.e., Daishin Information and SK Holdings go up and down completely randomly.
Pair Corralation between Daishin Information and SK Holdings
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 1.43 times more return on investment than SK Holdings. However, Daishin Information is 1.43 times more volatile than SK Holdings Co. It trades about 0.34 of its potential returns per unit of risk. SK Holdings Co is currently generating about -0.13 per unit of risk. If you would invest 83,400 in Daishin Information Communications on September 13, 2024 and sell it today you would earn a total of 20,800 from holding Daishin Information Communications or generate 24.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. SK Holdings Co
Performance |
| Timeline |
| Daishin Information |
| SK Holdings |
Daishin Information and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and SK Holdings
The main advantage of trading using opposite Daishin Information and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, SK Holdings 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 SK Holdings will offset losses from the drop in SK Holdings' long position.| Daishin Information vs. Settlebank | Daishin Information vs. Solution Advanced Technology | Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind |
| SK Holdings vs. INFINITT Healthcare Co | SK Holdings vs. Lotte Data Communication | SK Holdings vs. ECSTELECOM Co | SK Holdings vs. Daishin Information Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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