Correlation Between Daishin Information and Korea Information
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Korea Information 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 Korea Information 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 Korea Information Engineering, you can compare the effects of market volatilities on Daishin Information and Korea Information 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 Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Korea Information.
Diversification Opportunities for Daishin Information and Korea Information
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daishin and Korea is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Korea Information Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information 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 Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Daishin Information i.e., Daishin Information and Korea Information go up and down completely randomly.
Pair Corralation between Daishin Information and Korea Information
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 1.11 times more return on investment than Korea Information. However, Daishin Information is 1.11 times more volatile than Korea Information Engineering. It trades about 0.03 of its potential returns per unit of risk. Korea Information Engineering is currently generating about -0.02 per unit of risk. If you would invest 101,945 in Daishin Information Communications on January 22, 2025 and sell it today you would earn a total of 16,355 from holding Daishin Information Communications or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Korea Information Engineering
Performance |
| Timeline |
| Daishin Information |
| Korea Information |
Daishin Information and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Korea Information
The main advantage of trading using opposite Daishin Information and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Daishin Information vs. Settlebank | Daishin Information vs. Korea Computer Systems | Daishin Information vs. SSR Inc |
| Korea Information vs. Eugene Investment Securities | Korea Information vs. Dongwoo Farm To | Korea Information vs. KTB Investment Securities | Korea Information vs. Dongbang Ship Machinery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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