Correlation Between Iljin Display and DC Media
Can any of the company-specific risk be diversified away by investing in both Iljin Display and DC Media 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 Iljin Display and DC Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and DC Media Co, you can compare the effects of market volatilities on Iljin Display and DC Media 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 Iljin Display with a short position of DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and DC Media.
Diversification Opportunities for Iljin Display and DC Media
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iljin and 263720 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and DC Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media and Iljin Display 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 Iljin Display are associated (or correlated) with DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media has no effect on the direction of Iljin Display i.e., Iljin Display and DC Media go up and down completely randomly.
Pair Corralation between Iljin Display and DC Media
Assuming the 90 days trading horizon Iljin Display is expected to under-perform the DC Media. But the stock apears to be less risky and, when comparing its historical volatility, Iljin Display is 1.33 times less risky than DC Media. The stock trades about -0.01 of its potential returns per unit of risk. The DC Media Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,650,000 in DC Media Co on September 24, 2024 and sell it today you would lose (625,000) from holding DC Media Co or give up 23.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. DC Media Co
Performance |
| Timeline |
| Iljin Display |
| DC Media |
Iljin Display and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and DC Media
The main advantage of trading using opposite Iljin Display and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media's long position.| Iljin Display vs. SK IE Technology | Iljin Display vs. Solus Advanced Materials | Iljin Display vs. DAEDUCK ELECTRONICS CoLtd | Iljin Display vs. Sungmoon Electronics Co |
| DC Media vs. Iljin Display | DC Media vs. Lotte Data Communication | DC Media vs. DB Financial Investment | DC Media vs. Woori Technology Investment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |