Correlation Between Daishin Information and Sang A
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Sang A 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 Sang A 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 Sang A Frontec CoLtd, you can compare the effects of market volatilities on Daishin Information and Sang A 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 Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Sang A.
Diversification Opportunities for Daishin Information and Sang A
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Sang is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec 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 Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Daishin Information i.e., Daishin Information and Sang A go up and down completely randomly.
Pair Corralation between Daishin Information and Sang A
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 1.63 times more return on investment than Sang A. However, Daishin Information is 1.63 times more volatile than Sang A Frontec CoLtd. It trades about 0.22 of its potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about 0.15 per unit of risk. If you would invest 101,300 in Daishin Information Communications on December 9, 2024 and sell it today you would earn a total of 10,700 from holding Daishin Information Communications or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| Daishin Information |
| Sang A Frontec |
Daishin Information and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Sang A
The main advantage of trading using opposite Daishin Information and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Daishin Information vs. FNSTech Co | Daishin Information vs. Adaptive Plasma Technology | Daishin Information vs. KG Eco Technology | Daishin Information vs. Woori Technology |
| Sang A vs. Mgame Corp | Sang A vs. Korea Shipbuilding Offshore | Sang A vs. Jeong Moon Information | Sang A vs. DoubleU Games 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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