Correlation Between Daesung Private and System
Can any of the company-specific risk be diversified away by investing in both Daesung Private and System 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 Daesung Private and System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Private Equity and System and Application, you can compare the effects of market volatilities on Daesung Private and System 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 Daesung Private with a short position of System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Private and System.
Diversification Opportunities for Daesung Private and System
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daesung and System is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Private Equity and System and Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on System and Application and Daesung Private 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 Daesung Private Equity are associated (or correlated) with System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of System and Application has no effect on the direction of Daesung Private i.e., Daesung Private and System go up and down completely randomly.
Pair Corralation between Daesung Private and System
Assuming the 90 days trading horizon Daesung Private Equity is expected to generate 0.88 times more return on investment than System. However, Daesung Private Equity is 1.14 times less risky than System. It trades about -0.03 of its potential returns per unit of risk. System and Application is currently generating about -0.04 per unit of risk. If you would invest 193,000 in Daesung Private Equity on November 3, 2024 and sell it today you would lose (3,000) from holding Daesung Private Equity or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Private Equity vs. System and Application
Performance |
| Timeline |
| Daesung Private Equity |
| System and Application |
Daesung Private and System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Private and System
The main advantage of trading using opposite Daesung Private and System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Private position performs unexpectedly, System 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 System will offset losses from the drop in System's long position.| Daesung Private vs. GS Retail Co | Daesung Private vs. Ssangyong Materials Corp | Daesung Private vs. Kolon Plastics | Daesung Private vs. Ecoplastic |
| System vs. Hyosung Advanced Materials | System vs. Kisan Telecom Co | System vs. Ssangyong Information Communication | System vs. TOPMATERIAL LTD |
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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