Correlation Between Daishin Information and Sejong Telecom
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Sejong Telecom 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 Sejong Telecom 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 Sejong Telecom, you can compare the effects of market volatilities on Daishin Information and Sejong Telecom 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 Sejong Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Sejong Telecom.
Diversification Opportunities for Daishin Information and Sejong Telecom
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Daishin and Sejong is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Sejong Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejong Telecom 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 Sejong Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejong Telecom has no effect on the direction of Daishin Information i.e., Daishin Information and Sejong Telecom go up and down completely randomly.
Pair Corralation between Daishin Information and Sejong Telecom
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 0.71 times more return on investment than Sejong Telecom. However, Daishin Information Communications is 1.41 times less risky than Sejong Telecom. It trades about 0.0 of its potential returns per unit of risk. Sejong Telecom is currently generating about -0.02 per unit of risk. If you would invest 117,151 in Daishin Information Communications on November 19, 2024 and sell it today you would lose (10,251) from holding Daishin Information Communications or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.57% |
| Values | Daily Returns |
Daishin Information Communicat vs. Sejong Telecom
Performance |
| Timeline |
| Daishin Information |
| Sejong Telecom |
Daishin Information and Sejong Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Sejong Telecom
The main advantage of trading using opposite Daishin Information and Sejong Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Sejong Telecom 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 Sejong Telecom will offset losses from the drop in Sejong Telecom's long position.| Daishin Information vs. Samyung Trading Co | Daishin Information vs. SCI Information Service | Daishin Information vs. SV Investment | Daishin Information vs. NH Investment Securities |
| Sejong Telecom vs. Sam Chun Dang | Sejong Telecom vs. SAMRYOONG CoLtd | Sejong Telecom vs. BYON Co | Sejong Telecom vs. Sangsangin 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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