Correlation Between Daishin Information and TAEYANG
Can any of the company-specific risk be diversified away by investing in both Daishin Information and TAEYANG 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 TAEYANG 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 TAEYANG, you can compare the effects of market volatilities on Daishin Information and TAEYANG 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 TAEYANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and TAEYANG.
Diversification Opportunities for Daishin Information and TAEYANG
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daishin and TAEYANG is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and TAEYANG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAEYANG 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 TAEYANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAEYANG has no effect on the direction of Daishin Information i.e., Daishin Information and TAEYANG go up and down completely randomly.
Pair Corralation between Daishin Information and TAEYANG
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 2.29 times more return on investment than TAEYANG. However, Daishin Information is 2.29 times more volatile than TAEYANG. It trades about 0.03 of its potential returns per unit of risk. TAEYANG is currently generating about -0.04 per unit of risk. If you would invest 100,500 in Daishin Information Communications on September 27, 2024 and sell it today you would earn a total of 5,800 from holding Daishin Information Communications or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Daishin Information Communicat vs. TAEYANG
Performance |
| Timeline |
| Daishin Information |
| TAEYANG |
Daishin Information and TAEYANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and TAEYANG
The main advantage of trading using opposite Daishin Information and TAEYANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, TAEYANG 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 TAEYANG will offset losses from the drop in TAEYANG's long position.| Daishin Information vs. Lotte Chilsung Beverage | Daishin Information vs. Cuckoo Electronics Co | Daishin Information vs. Tway Air Co | Daishin Information vs. Korean Air Lines |
| TAEYANG vs. Heungkuk Metaltech CoLtd | TAEYANG vs. LG Household Healthcare | TAEYANG vs. MetaLabs Co | TAEYANG 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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