Correlation Between Dragonfly and SS TECH
Can any of the company-specific risk be diversified away by investing in both Dragonfly and SS TECH 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 SS TECH 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 SS TECH, you can compare the effects of market volatilities on Dragonfly and SS TECH 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 SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dragonfly and SS TECH.
Diversification Opportunities for Dragonfly and SS TECH
Poor diversification
The 3 months correlation between Dragonfly and 101490 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dragonfly GF Co and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH 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 SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Dragonfly i.e., Dragonfly and SS TECH go up and down completely randomly.
Pair Corralation between Dragonfly and SS TECH
Assuming the 90 days trading horizon Dragonfly GF Co is expected to under-perform the SS TECH. In addition to that, Dragonfly is 1.18 times more volatile than SS TECH. It trades about -0.06 of its total potential returns per unit of risk. SS TECH is currently generating about 0.01 per unit of volatility. If you would invest 2,655,659 in SS TECH on September 2, 2024 and sell it today you would lose (410,659) from holding SS TECH or give up 15.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.9% |
| Values | Daily Returns |
Dragonfly GF Co vs. SS TECH
Performance |
| Timeline |
| Dragonfly GF |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SS TECH |
Dragonfly and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dragonfly and SS TECH
The main advantage of trading using opposite Dragonfly and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dragonfly position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH's long position.| Dragonfly vs. Iljin Display | Dragonfly vs. Daesung Hi Tech Co | Dragonfly vs. Daou Technology | Dragonfly vs. Hwangkum Steel Technology |
| SS TECH vs. Dongsin Engineering Construction | SS TECH vs. Doosan Fuel Cell | SS TECH vs. Daishin Balance 1 | SS TECH vs. Total Soft Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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