Correlation Between Genie Music and Daishin Information
Can any of the company-specific risk be diversified away by investing in both Genie Music and Daishin Information 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 Genie Music and Daishin Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Daishin Information Communications, you can compare the effects of market volatilities on Genie Music and Daishin Information 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 Genie Music with a short position of Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Daishin Information.
Diversification Opportunities for Genie Music and Daishin Information
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genie and Daishin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information and Genie Music 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 Genie Music are associated (or correlated) with Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of Genie Music i.e., Genie Music and Daishin Information go up and down completely randomly.
Pair Corralation between Genie Music and Daishin Information
Assuming the 90 days trading horizon Genie Music is expected to under-perform the Daishin Information. In addition to that, Genie Music is 2.38 times more volatile than Daishin Information Communications. It trades about -0.07 of its total potential returns per unit of risk. Daishin Information Communications is currently generating about -0.13 per unit of volatility. If you would invest 108,600 in Daishin Information Communications on August 28, 2024 and sell it today you would lose (22,800) from holding Daishin Information Communications or give up 20.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. Daishin Information Communicat
Performance |
| Timeline |
| Genie Music |
| Daishin Information |
Genie Music and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Daishin Information
The main advantage of trading using opposite Genie Music and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information's long position.| Genie Music vs. KakaoBank Corp | Genie Music vs. Dongbang Transport Logistics | Genie Music vs. Youngsin Metal Industrial | Genie Music vs. Koryo Credit Information |
| Daishin Information vs. LB Investment | Daishin Information vs. DSC Investment | Daishin Information vs. Coloray International Investment | Daishin Information vs. Hanwha InvestmentSecurities 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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