Correlation Between Stic Investments and Dawonsys CoLtd
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Dawonsys CoLtd 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 Stic Investments and Dawonsys CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Dawonsys CoLtd, you can compare the effects of market volatilities on Stic Investments and Dawonsys CoLtd 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 Stic Investments with a short position of Dawonsys CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Dawonsys CoLtd.
Diversification Opportunities for Stic Investments and Dawonsys CoLtd
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stic and Dawonsys is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Dawonsys CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawonsys CoLtd and Stic Investments 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 Stic Investments are associated (or correlated) with Dawonsys CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawonsys CoLtd has no effect on the direction of Stic Investments i.e., Stic Investments and Dawonsys CoLtd go up and down completely randomly.
Pair Corralation between Stic Investments and Dawonsys CoLtd
Assuming the 90 days trading horizon Stic Investments is expected to generate 1.0 times more return on investment than Dawonsys CoLtd. However, Stic Investments is 1.0 times less risky than Dawonsys CoLtd. It trades about 0.06 of its potential returns per unit of risk. Dawonsys CoLtd is currently generating about 0.02 per unit of risk. If you would invest 809,000 in Stic Investments on September 3, 2024 and sell it today you would earn a total of 19,000 from holding Stic Investments or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. Dawonsys CoLtd
Performance |
| Timeline |
| Stic Investments |
| Dawonsys CoLtd |
Stic Investments and Dawonsys CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Dawonsys CoLtd
The main advantage of trading using opposite Stic Investments and Dawonsys CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Dawonsys CoLtd 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 Dawonsys CoLtd will offset losses from the drop in Dawonsys CoLtd's long position.| Stic Investments vs. Asiana Airlines | Stic Investments vs. Daishin Information Communications | Stic Investments vs. Ssangyong Information Communication | Stic Investments vs. Nable Communications |
| Dawonsys CoLtd vs. Atinum Investment Co | Dawonsys CoLtd vs. Korea Investment Holdings | Dawonsys CoLtd vs. Stic Investments | Dawonsys CoLtd vs. Golden Bridge 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |