Correlation Between Dragonfly and Ezwelfare
Can any of the company-specific risk be diversified away by investing in both Dragonfly and Ezwelfare 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 Ezwelfare 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 Ezwelfare Co, you can compare the effects of market volatilities on Dragonfly and Ezwelfare 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 Ezwelfare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dragonfly and Ezwelfare.
Diversification Opportunities for Dragonfly and Ezwelfare
Very good diversification
The 3 months correlation between Dragonfly and Ezwelfare is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dragonfly GF Co and Ezwelfare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ezwelfare 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 Ezwelfare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ezwelfare has no effect on the direction of Dragonfly i.e., Dragonfly and Ezwelfare go up and down completely randomly.
Pair Corralation between Dragonfly and Ezwelfare
Assuming the 90 days trading horizon Dragonfly GF Co is expected to generate 9.6 times more return on investment than Ezwelfare. However, Dragonfly is 9.6 times more volatile than Ezwelfare Co. It trades about 0.03 of its potential returns per unit of risk. Ezwelfare Co is currently generating about -0.25 per unit of risk. If you would invest 135,000 in Dragonfly GF Co on October 24, 2024 and sell it today you would lose (1,900) from holding Dragonfly GF Co or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dragonfly GF Co vs. Ezwelfare Co
Performance |
| Timeline |
| Dragonfly GF |
| Ezwelfare |
Dragonfly and Ezwelfare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dragonfly and Ezwelfare
The main advantage of trading using opposite Dragonfly and Ezwelfare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dragonfly position performs unexpectedly, Ezwelfare 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 Ezwelfare will offset losses from the drop in Ezwelfare's long position.| Dragonfly vs. Samsung Electronics Co | Dragonfly vs. Samsung Electronics Co | Dragonfly vs. LG Energy Solution | Dragonfly vs. SK Hynix |
| Ezwelfare vs. Iljin Display | Ezwelfare vs. GS Retail Co | Ezwelfare vs. Sangsin Energy Display | Ezwelfare vs. Alton Sports CoLtd |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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