Correlation Between Asiana Airlines and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Daewoo SBI 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 Asiana Airlines and Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Daewoo SBI SPAC, you can compare the effects of market volatilities on Asiana Airlines and Daewoo SBI 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 Asiana Airlines with a short position of Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Daewoo SBI.
Diversification Opportunities for Asiana Airlines and Daewoo SBI
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asiana and Daewoo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Daewoo SBI go up and down completely randomly.
Pair Corralation between Asiana Airlines and Daewoo SBI
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 1.35 times more return on investment than Daewoo SBI. However, Asiana Airlines is 1.35 times more volatile than Daewoo SBI SPAC. It trades about 0.18 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.21 per unit of risk. If you would invest 923,000 in Asiana Airlines on September 3, 2024 and sell it today you would earn a total of 151,000 from holding Asiana Airlines or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Asiana Airlines |
| Daewoo SBI SPAC |
Asiana Airlines and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Daewoo SBI
The main advantage of trading using opposite Asiana Airlines and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Daewoo SBI SPAC | Asiana Airlines vs. Dream Security co | Asiana Airlines vs. Microfriend |
| Daewoo SBI vs. Daejoo Electronic Materials | Daewoo SBI vs. Mgame Corp | Daewoo SBI vs. Kakao Games Corp | Daewoo SBI vs. Iljin Materials 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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