Correlation Between Daishin Information and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Daishin Information and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Duksan Hi.
Diversification Opportunities for Daishin Information and Duksan Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daishin and Duksan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Daishin Information i.e., Daishin Information and Duksan Hi go up and down completely randomly.
Pair Corralation between Daishin Information and Duksan Hi
Assuming the 90 days trading horizon Daishin Information Communications is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Daishin Information Communications is 1.69 times less risky than Duksan Hi. The stock trades about -0.05 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 512,000 in Duksan Hi Metal on August 28, 2024 and sell it today you would lose (113,000) from holding Duksan Hi Metal or give up 22.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Duksan Hi Metal
Performance |
| Timeline |
| Daishin Information |
| Duksan Hi Metal |
Daishin Information and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Duksan Hi
The main advantage of trading using opposite Daishin Information and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Daishin Information vs. LB Investment | Daishin Information vs. DSC Investment | Daishin Information vs. Coloray International Investment | Daishin Information vs. Hanwha InvestmentSecurities Co |
| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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