Correlation Between Daishin Information and Sewoon Medical
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Sewoon Medical 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 Sewoon Medical 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 Sewoon Medical Co, you can compare the effects of market volatilities on Daishin Information and Sewoon Medical 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 Sewoon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Sewoon Medical.
Diversification Opportunities for Daishin Information and Sewoon Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Sewoon is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Sewoon Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sewoon Medical 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 Sewoon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sewoon Medical has no effect on the direction of Daishin Information i.e., Daishin Information and Sewoon Medical go up and down completely randomly.
Pair Corralation between Daishin Information and Sewoon Medical
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 1.45 times more return on investment than Sewoon Medical. However, Daishin Information is 1.45 times more volatile than Sewoon Medical Co. It trades about 0.0 of its potential returns per unit of risk. Sewoon Medical Co is currently generating about -0.01 per unit of risk. If you would invest 123,906 in Daishin Information Communications on October 17, 2024 and sell it today you would lose (18,406) from holding Daishin Information Communications or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Sewoon Medical Co
Performance |
| Timeline |
| Daishin Information |
| Sewoon Medical |
Daishin Information and Sewoon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Sewoon Medical
The main advantage of trading using opposite Daishin Information and Sewoon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Sewoon Medical 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 Sewoon Medical will offset losses from the drop in Sewoon Medical's long position.| Daishin Information vs. Korean Reinsurance Co | Daishin Information vs. Samsung Publishing Co | Daishin Information vs. Incar Financial Service | Daishin Information vs. Woori Financial Group |
| Sewoon Medical vs. Daiyang Metal Co | Sewoon Medical vs. Dongbang Transport Logistics | Sewoon Medical vs. Daishin Information Communications | Sewoon Medical vs. PJ Metal 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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