Correlation Between Daou Data and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Daou Data and Sangsin Energy 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 Sangsin Energy 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 Sangsin Energy Display, you can compare the effects of market volatilities on Daou Data and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and Sangsin Energy.
Diversification Opportunities for Daou Data and Sangsin Energy
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daou and Sangsin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Daou Data i.e., Daou Data and Sangsin Energy go up and down completely randomly.
Pair Corralation between Daou Data and Sangsin Energy
Assuming the 90 days trading horizon Daou Data Corp is expected to generate 0.41 times more return on investment than Sangsin Energy. However, Daou Data Corp is 2.46 times less risky than Sangsin Energy. It trades about -0.05 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.48 per unit of risk. If you would invest 1,095,000 in Daou Data Corp on September 1, 2024 and sell it today you would lose (14,000) from holding Daou Data Corp or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Data Corp vs. Sangsin Energy Display
Performance |
| Timeline |
| Daou Data Corp |
| Sangsin Energy Display |
Daou Data and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and Sangsin Energy
The main advantage of trading using opposite Daou Data and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| Sangsin Energy vs. Korea New Network | Sangsin Energy vs. ICD Co | Sangsin Energy vs. DYPNF CoLtd | Sangsin Energy vs. Busan Industrial 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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