Correlation Between Shinsegae Information and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information and Duksan Hi 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 Shinsegae Information and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Duksan Hi Metal, you can compare the effects of market volatilities on Shinsegae Information and Duksan Hi 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 Shinsegae Information with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Duksan Hi.
Diversification Opportunities for Shinsegae Information and Duksan Hi
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinsegae and Duksan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Shinsegae Information 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 Shinsegae Information Communication are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and Duksan Hi go up and down completely randomly.
Pair Corralation between Shinsegae Information and Duksan Hi
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to generate 0.48 times more return on investment than Duksan Hi. However, Shinsegae Information Communication is 2.07 times less risky than Duksan Hi. It trades about 0.01 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.06 per unit of risk. If you would invest 882,000 in Shinsegae Information Communication on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Shinsegae Information Communication or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Duksan Hi Metal
Performance |
| Timeline |
| Shinsegae Information |
| Duksan Hi Metal |
Shinsegae Information and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Duksan Hi
The main advantage of trading using opposite Shinsegae Information and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Shinsegae Information vs. Samsung Electronics Co | Shinsegae Information vs. Samsung Electronics Co | Shinsegae Information vs. SK Hynix | Shinsegae Information vs. POSCO Holdings |
| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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