Correlation Between Asiana Airlines and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Daishin Balance 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 Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Daishin Balance No8, you can compare the effects of market volatilities on Asiana Airlines and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Daishin Balance.
Diversification Opportunities for Asiana Airlines and Daishin Balance
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiana and Daishin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Daishin Balance go up and down completely randomly.
Pair Corralation between Asiana Airlines and Daishin Balance
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 4.53 times less return on investment than Daishin Balance. But when comparing it to its historical volatility, Asiana Airlines is 4.19 times less risky than Daishin Balance. It trades about 0.29 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 445,000 in Daishin Balance No8 on October 24, 2024 and sell it today you would earn a total of 118,000 from holding Daishin Balance No8 or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Daishin Balance No8
Performance |
| Timeline |
| Asiana Airlines |
| Daishin Balance No8 |
Asiana Airlines and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Daishin Balance
The main advantage of trading using opposite Asiana Airlines and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Asiana Airlines vs. DB Insurance Co | Asiana Airlines vs. Samick Musical Instruments | Asiana Airlines vs. KakaoBank Corp | Asiana Airlines vs. Shinhan Financial Group |
| Daishin Balance vs. Next Entertainment World | Daishin Balance vs. Asiana Airlines | Daishin Balance vs. Samsung Publishing Co | Daishin Balance vs. DC Media 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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