Correlation Between Daou Data and SHINWON STRUCTION
Can any of the company-specific risk be diversified away by investing in both Daou Data and SHINWON STRUCTION 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 SHINWON STRUCTION 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 SHINWON STRUCTION COMPANY, you can compare the effects of market volatilities on Daou Data and SHINWON STRUCTION 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 SHINWON STRUCTION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and SHINWON STRUCTION.
Diversification Opportunities for Daou Data and SHINWON STRUCTION
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daou and SHINWON is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and SHINWON STRUCTION COMPANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHINWON STRUCTION PANY 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 SHINWON STRUCTION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHINWON STRUCTION PANY has no effect on the direction of Daou Data i.e., Daou Data and SHINWON STRUCTION go up and down completely randomly.
Pair Corralation between Daou Data and SHINWON STRUCTION
If you would invest 1,007,000 in Daou Data Corp on November 2, 2024 and sell it today you would earn a total of 4,000 from holding Daou Data Corp or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Daou Data Corp vs. SHINWON STRUCTION COMPANY
Performance |
| Timeline |
| Daou Data Corp |
| SHINWON STRUCTION PANY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Daou Data and SHINWON STRUCTION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and SHINWON STRUCTION
The main advantage of trading using opposite Daou Data and SHINWON STRUCTION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data position performs unexpectedly, SHINWON STRUCTION 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 SHINWON STRUCTION will offset losses from the drop in SHINWON STRUCTION's long position.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| SHINWON STRUCTION vs. Kyung In Synthetic Corp | SHINWON STRUCTION vs. Lotte Fine Chemical | SHINWON STRUCTION vs. Kukdo Chemical Co | SHINWON STRUCTION vs. Sangsin Energy Display |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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