Correlation Between Daewon Media and SK Bioscience
Can any of the company-specific risk be diversified away by investing in both Daewon Media and SK Bioscience 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 SK Bioscience 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 SK Bioscience Co, you can compare the effects of market volatilities on Daewon Media and SK Bioscience 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 SK Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and SK Bioscience.
Diversification Opportunities for Daewon Media and SK Bioscience
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daewon and 302440 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and SK Bioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Bioscience 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 SK Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Bioscience has no effect on the direction of Daewon Media i.e., Daewon Media and SK Bioscience go up and down completely randomly.
Pair Corralation between Daewon Media and SK Bioscience
Assuming the 90 days trading horizon Daewon Media Co is expected to generate 1.36 times more return on investment than SK Bioscience. However, Daewon Media is 1.36 times more volatile than SK Bioscience Co. It trades about 0.18 of its potential returns per unit of risk. SK Bioscience Co is currently generating about -0.04 per unit of risk. If you would invest 775,779 in Daewon Media Co on October 23, 2024 and sell it today you would earn a total of 80,221 from holding Daewon Media Co or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Daewon Media Co vs. SK Bioscience Co
Performance |
| Timeline |
| Daewon Media |
| SK Bioscience |
Daewon Media and SK Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and SK Bioscience
The main advantage of trading using opposite Daewon Media and SK Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media position performs unexpectedly, SK Bioscience 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 SK Bioscience will offset losses from the drop in SK Bioscience's long position.| Daewon Media vs. LEENO Industrial | Daewon Media vs. PJ Metal Co | Daewon Media vs. Hyunwoo Industrial Co | Daewon Media vs. Hyundai Industrial Co |
| SK Bioscience vs. Samsung Biologics Co | SK Bioscience vs. Sk Biopharmaceuticals Co | SK Bioscience vs. ABL Bio | SK Bioscience vs. Green Cross Lab |
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 CEOs Directory module to screen CEOs from public companies around the world.
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