Correlation Between Daishin Information and Cytogen
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on Daishin Information and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Cytogen.
Diversification Opportunities for Daishin Information and Cytogen
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Daishin and Cytogen is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Daishin Information i.e., Daishin Information and Cytogen go up and down completely randomly.
Pair Corralation between Daishin Information and Cytogen
Assuming the 90 days trading horizon Daishin Information Communications is expected to generate 0.6 times more return on investment than Cytogen. However, Daishin Information Communications is 1.67 times less risky than Cytogen. It trades about -0.04 of its potential returns per unit of risk. Cytogen is currently generating about -0.05 per unit of risk. If you would invest 139,443 in Daishin Information Communications on September 2, 2024 and sell it today you would lose (53,543) from holding Daishin Information Communications or give up 38.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Cytogen
Performance |
| Timeline |
| Daishin Information |
| Cytogen |
Daishin Information and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Cytogen
The main advantage of trading using opposite Daishin Information and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Daishin Information vs. Busan Industrial Co | Daishin Information vs. Busan Ind | Daishin Information vs. Mirae Asset Daewoo | Daishin Information vs. Finebesteel |
| Cytogen vs. Kukdo Chemical Co | Cytogen vs. LG Chemicals | Cytogen vs. Aprogen Healthcare Games | Cytogen vs. Kakao Games Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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