Correlation Between Daewon Media and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Daewon Media and BGF Retail 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 BGF Retail 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 BGF Retail Co, you can compare the effects of market volatilities on Daewon Media and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and BGF Retail.
Diversification Opportunities for Daewon Media and BGF Retail
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daewon and BGF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Daewon Media i.e., Daewon Media and BGF Retail go up and down completely randomly.
Pair Corralation between Daewon Media and BGF Retail
Assuming the 90 days trading horizon Daewon Media Co is expected to generate 2.59 times more return on investment than BGF Retail. However, Daewon Media is 2.59 times more volatile than BGF Retail Co. It trades about 0.21 of its potential returns per unit of risk. BGF Retail Co is currently generating about 0.09 per unit of risk. If you would invest 778,000 in Daewon Media Co on November 3, 2024 and sell it today you would earn a total of 99,000 from holding Daewon Media Co or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewon Media Co vs. BGF Retail Co
Performance |
| Timeline |
| Daewon Media |
| BGF Retail |
Daewon Media and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and BGF Retail
The main advantage of trading using opposite Daewon Media and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| Daewon Media vs. Hotel Shilla Co | Daewon Media vs. BIT Computer Co | Daewon Media vs. CKH Food Health | Daewon Media vs. Foodnamoo |
| BGF Retail vs. Cuckoo Electronics Co | BGF Retail vs. Miwon Chemicals Co | BGF Retail vs. Daejoo Electronic Materials | BGF Retail vs. ABCO 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |