Correlation Between Daewon Media and PH Tech
Can any of the company-specific risk be diversified away by investing in both Daewon Media and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Daewon Media and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and PH Tech.
Diversification Opportunities for Daewon Media and PH Tech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daewon and 239890 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Daewon Media i.e., Daewon Media and PH Tech go up and down completely randomly.
Pair Corralation between Daewon Media and PH Tech
Assuming the 90 days trading horizon Daewon Media is expected to generate 1.08 times less return on investment than PH Tech. But when comparing it to its historical volatility, Daewon Media Co is 1.06 times less risky than PH Tech. It trades about 0.24 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 730,000 in PH Tech Co on October 17, 2024 and sell it today you would earn a total of 111,000 from holding PH Tech Co or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewon Media Co vs. PH Tech Co
Performance |
| Timeline |
| Daewon Media |
| PH Tech |
Daewon Media and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and PH Tech
The main advantage of trading using opposite Daewon Media and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Daewon Media vs. UJU Electronics Co | Daewon Media vs. Samyoung Electronics Co | Daewon Media vs. Kakao Games Corp | Daewon Media vs. DoubleU Games Co |
| PH Tech vs. Samyoung Electronics Co | PH Tech vs. DB Financial Investment | PH Tech vs. Atinum Investment Co | PH Tech vs. SungMoon Electronics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |