Correlation Between Dragonfly and Samjin LND
Can any of the company-specific risk be diversified away by investing in both Dragonfly and Samjin LND 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 Dragonfly and Samjin LND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dragonfly GF Co and Samjin LND Co, you can compare the effects of market volatilities on Dragonfly and Samjin LND 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 Dragonfly with a short position of Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dragonfly and Samjin LND.
Diversification Opportunities for Dragonfly and Samjin LND
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dragonfly and Samjin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dragonfly GF Co and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND and Dragonfly 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 Dragonfly GF Co are associated (or correlated) with Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of Dragonfly i.e., Dragonfly and Samjin LND go up and down completely randomly.
Pair Corralation between Dragonfly and Samjin LND
Assuming the 90 days trading horizon Dragonfly GF Co is expected to under-perform the Samjin LND. In addition to that, Dragonfly is 1.51 times more volatile than Samjin LND Co. It trades about -0.06 of its total potential returns per unit of risk. Samjin LND Co is currently generating about -0.08 per unit of volatility. If you would invest 274,083 in Samjin LND Co on September 1, 2024 and sell it today you would lose (195,883) from holding Samjin LND Co or give up 71.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.69% |
| Values | Daily Returns |
Dragonfly GF Co vs. Samjin LND Co
Performance |
| Timeline |
| Dragonfly GF |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Samjin LND |
Dragonfly and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dragonfly and Samjin LND
The main advantage of trading using opposite Dragonfly and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dragonfly position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| Dragonfly vs. Dongbang Ship Machinery | Dragonfly vs. Daewoo Engineering Construction | Dragonfly vs. Semyung Electric Machinery | Dragonfly vs. Seoam Machinery Industry |
| Samjin LND vs. Samsung Life Insurance | Samjin LND vs. Hankuk Steel Wire | Samjin LND vs. Dongil Steel Co | Samjin LND vs. J Steel 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |