Correlation Between Seoul Broadcasting and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Seoul Broadcasting and Daelim Trading 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 Seoul Broadcasting and Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Broadcasting System and Daelim Trading Co, you can compare the effects of market volatilities on Seoul Broadcasting and Daelim Trading 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 Seoul Broadcasting with a short position of Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Broadcasting and Daelim Trading.
Diversification Opportunities for Seoul Broadcasting and Daelim Trading
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seoul and Daelim is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Broadcasting System and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading and Seoul Broadcasting 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 Seoul Broadcasting System are associated (or correlated) with Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Seoul Broadcasting i.e., Seoul Broadcasting and Daelim Trading go up and down completely randomly.
Pair Corralation between Seoul Broadcasting and Daelim Trading
Assuming the 90 days trading horizon Seoul Broadcasting System is expected to generate 0.36 times more return on investment than Daelim Trading. However, Seoul Broadcasting System is 2.81 times less risky than Daelim Trading. It trades about 0.05 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.07 per unit of risk. If you would invest 1,521,000 in Seoul Broadcasting System on September 3, 2024 and sell it today you would earn a total of 14,000 from holding Seoul Broadcasting System or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Broadcasting System vs. Daelim Trading Co
Performance |
| Timeline |
| Seoul Broadcasting System |
| Daelim Trading |
Seoul Broadcasting and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Broadcasting and Daelim Trading
The main advantage of trading using opposite Seoul Broadcasting and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Broadcasting position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Seoul Broadcasting vs. Sunny Electronics Corp | Seoul Broadcasting vs. AurosTechnology | Seoul Broadcasting vs. Solution Advanced Technology | Seoul Broadcasting vs. Shinil Electronics Co |
| Daelim Trading vs. Daishin Information Communications | Daelim Trading vs. Hana Financial | Daelim Trading vs. Automobile Pc | Daelim Trading vs. KakaoBank Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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