Correlation Between INtRON Biotechnology and Daehan Steel
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Daehan Steel 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 INtRON Biotechnology and Daehan Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Daehan Steel, you can compare the effects of market volatilities on INtRON Biotechnology and Daehan Steel 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 INtRON Biotechnology with a short position of Daehan Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Daehan Steel.
Diversification Opportunities for INtRON Biotechnology and Daehan Steel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between INtRON and Daehan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Daehan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Steel and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Daehan Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Steel has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Daehan Steel go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Daehan Steel
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the Daehan Steel. In addition to that, INtRON Biotechnology is 1.55 times more volatile than Daehan Steel. It trades about -0.06 of its total potential returns per unit of risk. Daehan Steel is currently generating about -0.02 per unit of volatility. If you would invest 1,665,000 in Daehan Steel on October 28, 2024 and sell it today you would lose (10,000) from holding Daehan Steel or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Daehan Steel
Performance |
| Timeline |
| iNtRON Biotechnology |
| Daehan Steel |
INtRON Biotechnology and Daehan Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Daehan Steel
The main advantage of trading using opposite INtRON Biotechnology and Daehan Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Daehan Steel 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 Daehan Steel will offset losses from the drop in Daehan Steel's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Daehan Steel vs. Youl Chon Chemical | Daehan Steel vs. Youngchang Chemical Co | Daehan Steel vs. ENF Technology Co | Daehan Steel vs. Seers Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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