Correlation Between Asiana Airlines and DSC Investment
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and DSC Investment 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 DSC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and DSC Investment, you can compare the effects of market volatilities on Asiana Airlines and DSC Investment 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 DSC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and DSC Investment.
Diversification Opportunities for Asiana Airlines and DSC Investment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asiana and DSC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and DSC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSC Investment 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 DSC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSC Investment has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and DSC Investment go up and down completely randomly.
Pair Corralation between Asiana Airlines and DSC Investment
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 0.69 times more return on investment than DSC Investment. However, Asiana Airlines is 1.44 times less risky than DSC Investment. It trades about 0.18 of its potential returns per unit of risk. DSC Investment is currently generating about -0.33 per unit of risk. If you would invest 1,031,000 in Asiana Airlines on November 7, 2024 and sell it today you would earn a total of 25,000 from holding Asiana Airlines or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Asiana Airlines vs. DSC Investment
Performance |
| Timeline |
| Asiana Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| DSC Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asiana Airlines and DSC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and DSC Investment
The main advantage of trading using opposite Asiana Airlines and DSC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, DSC Investment 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 DSC Investment will offset losses from the drop in DSC Investment's long position.| Asiana Airlines vs. Namhae Chemical | Asiana Airlines vs. Narae Nanotech Corp | Asiana Airlines vs. Hansol Chemical Co | Asiana Airlines vs. FNSTech Co |
| DSC Investment vs. Settlebank | DSC Investment vs. SK Chemicals Co | DSC Investment vs. Automobile Pc | DSC Investment vs. Jeju Bank |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |