Correlation Between Daou Data and Playgram
Can any of the company-specific risk be diversified away by investing in both Daou Data and Playgram 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 Daou Data and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Data Corp and Playgram Co, you can compare the effects of market volatilities on Daou Data and Playgram 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 Daou Data with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and Playgram.
Diversification Opportunities for Daou Data and Playgram
Good diversification
The 3 months correlation between Daou and Playgram is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Daou Data 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 Daou Data Corp are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Daou Data i.e., Daou Data and Playgram go up and down completely randomly.
Pair Corralation between Daou Data and Playgram
Assuming the 90 days trading horizon Daou Data Corp is expected to under-perform the Playgram. But the stock apears to be less risky and, when comparing its historical volatility, Daou Data Corp is 2.86 times less risky than Playgram. The stock trades about -0.07 of its potential returns per unit of risk. The Playgram Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 31,100 in Playgram Co on October 16, 2024 and sell it today you would earn a total of 9,300 from holding Playgram Co or generate 29.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Data Corp vs. Playgram Co
Performance |
| Timeline |
| Daou Data Corp |
| Playgram |
Daou Data and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and Playgram
The main advantage of trading using opposite Daou Data and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| Playgram vs. Songwon Industrial Co | Playgram vs. NICE Information Service | Playgram vs. Daou Data Corp | Playgram vs. Sam Yang Foods |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance |