Correlation Between Daol Investment and Cytogen
Can any of the company-specific risk be diversified away by investing in both Daol Investment and Cytogen 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 Daol Investment and Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daol Investment Securities and Cytogen, you can compare the effects of market volatilities on Daol Investment and Cytogen 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 Daol Investment with a short position of Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daol Investment and Cytogen.
Diversification Opportunities for Daol Investment and Cytogen
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daol and Cytogen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Daol Investment Securities and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen and Daol Investment 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 Daol Investment Securities are associated (or correlated) with Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Daol Investment i.e., Daol Investment and Cytogen go up and down completely randomly.
Pair Corralation between Daol Investment and Cytogen
Assuming the 90 days trading horizon Daol Investment Securities is expected to generate 0.75 times more return on investment than Cytogen. However, Daol Investment Securities is 1.32 times less risky than Cytogen. It trades about 0.0 of its potential returns per unit of risk. Cytogen is currently generating about -0.05 per unit of risk. If you would invest 349,163 in Daol Investment Securities on October 29, 2024 and sell it today you would lose (52,663) from holding Daol Investment Securities or give up 15.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daol Investment Securities vs. Cytogen
Performance |
| Timeline |
| Daol Investment Secu |
| Cytogen |
Daol Investment and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daol Investment and Cytogen
The main advantage of trading using opposite Daol Investment and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daol Investment position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Daol Investment vs. Samsung Electronics Co | Daol Investment vs. Samsung Electronics Co | Daol Investment vs. LG Energy Solution | Daol Investment vs. SK Hynix |
| Cytogen vs. Daewoo Engineering Construction | Cytogen vs. Camus Engineering Construction | Cytogen vs. Seohee Construction Co | Cytogen vs. GS Engineering Construction |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |