Correlation Between Daewon Media and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Daewon Media and Anam Electronics 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 Daewon Media and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewon Media Co and Anam Electronics Co, you can compare the effects of market volatilities on Daewon Media and Anam Electronics 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 Daewon Media with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and Anam Electronics.
Diversification Opportunities for Daewon Media and Anam Electronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daewon and Anam is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Daewon Media 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 Daewon Media Co are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Daewon Media i.e., Daewon Media and Anam Electronics go up and down completely randomly.
Pair Corralation between Daewon Media and Anam Electronics
Assuming the 90 days trading horizon Daewon Media Co is expected to generate 0.78 times more return on investment than Anam Electronics. However, Daewon Media Co is 1.28 times less risky than Anam Electronics. It trades about -0.1 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.1 per unit of risk. If you would invest 1,148,261 in Daewon Media Co on August 29, 2024 and sell it today you would lose (388,261) from holding Daewon Media Co or give up 33.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewon Media Co vs. Anam Electronics Co
Performance |
| Timeline |
| Daewon Media |
| Anam Electronics |
Daewon Media and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and Anam Electronics
The main advantage of trading using opposite Daewon Media and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Daewon Media vs. Korea New Network | Daewon Media vs. Busan Industrial Co | Daewon Media vs. Busan Ind | Daewon Media vs. Shinhan WTI Futures |
| Anam Electronics vs. Osang Healthcare Co,Ltd | Anam Electronics vs. Pureun Mutual Savings | Anam Electronics vs. Incar Financial Service | Anam Electronics vs. DB Financial Investment |
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.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |