Correlation Between Daou Technology and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both Daou Technology and Shinil Industrial 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 Daou Technology and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Technology and Shinil Industrial Co, you can compare the effects of market volatilities on Daou Technology and Shinil Industrial 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 Daou Technology with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Technology and Shinil Industrial.
Diversification Opportunities for Daou Technology and Shinil Industrial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daou and Shinil is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Daou Technology and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and Daou Technology 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 Daou Technology are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of Daou Technology i.e., Daou Technology and Shinil Industrial go up and down completely randomly.
Pair Corralation between Daou Technology and Shinil Industrial
Assuming the 90 days trading horizon Daou Technology is expected to under-perform the Shinil Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Daou Technology is 1.17 times less risky than Shinil Industrial. The stock trades about -0.06 of its potential returns per unit of risk. The Shinil Industrial Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 147,449 in Shinil Industrial Co on November 6, 2024 and sell it today you would lose (7,049) from holding Shinil Industrial Co or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Technology vs. Shinil Industrial Co
Performance |
| Timeline |
| Daou Technology |
| Shinil Industrial |
Daou Technology and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Technology and Shinil Industrial
The main advantage of trading using opposite Daou Technology and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Technology position performs unexpectedly, Shinil Industrial 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| Daou Technology vs. DoubleU Games Co | Daou Technology vs. Woori Financial Group | Daou Technology vs. Incar Financial Service | Daou Technology vs. Netmarble Games Corp |
| Shinil Industrial vs. Stic Investments | Shinil Industrial vs. Golden Bridge Investment | Shinil Industrial vs. Daol Investment Securities | Shinil Industrial vs. Chorokbaem Healthcare 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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