Correlation Between Daewoo Engineering and Maniker F
Can any of the company-specific risk be diversified away by investing in both Daewoo Engineering and Maniker F 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 Daewoo Engineering and Maniker F into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo Engineering Construction and Maniker F G, you can compare the effects of market volatilities on Daewoo Engineering and Maniker F 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 Daewoo Engineering with a short position of Maniker F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo Engineering and Maniker F.
Diversification Opportunities for Daewoo Engineering and Maniker F
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daewoo and Maniker is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo Engineering Constructio and Maniker F G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maniker F G and Daewoo Engineering 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 Daewoo Engineering Construction are associated (or correlated) with Maniker F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maniker F G has no effect on the direction of Daewoo Engineering i.e., Daewoo Engineering and Maniker F go up and down completely randomly.
Pair Corralation between Daewoo Engineering and Maniker F
Assuming the 90 days trading horizon Daewoo Engineering Construction is expected to under-perform the Maniker F. But the stock apears to be less risky and, when comparing its historical volatility, Daewoo Engineering Construction is 1.36 times less risky than Maniker F. The stock trades about -0.03 of its potential returns per unit of risk. The Maniker F G is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 310,000 in Maniker F G on September 4, 2024 and sell it today you would lose (30,000) from holding Maniker F G or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewoo Engineering Constructio vs. Maniker F G
Performance |
| Timeline |
| Daewoo Engineering |
| Maniker F G |
Daewoo Engineering and Maniker F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo Engineering and Maniker F
The main advantage of trading using opposite Daewoo Engineering and Maniker F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo Engineering position performs unexpectedly, Maniker F 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 Maniker F will offset losses from the drop in Maniker F's long position.| Daewoo Engineering vs. SKONEC Entertainment Co | Daewoo Engineering vs. Digital Multimedia Technology | Daewoo Engineering vs. Kaonmedia Co | Daewoo Engineering vs. Alton Sports CoLtd |
| Maniker F vs. Samsung Electronics Co | Maniker F vs. Samsung Electronics Co | Maniker F vs. LG Energy Solution | Maniker F vs. SK Hynix |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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