Correlation Between Koryo Credit and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and DAEDUCK 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 Koryo Credit and DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Koryo Credit and DAEDUCK 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 Koryo Credit with a short position of DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and DAEDUCK ELECTRONICS.
Diversification Opportunities for Koryo Credit and DAEDUCK ELECTRONICS
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koryo and DAEDUCK is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Koryo Credit i.e., Koryo Credit and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Koryo Credit and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the DAEDUCK ELECTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 1.99 times less risky than DAEDUCK ELECTRONICS. The stock trades about -0.25 of its potential returns per unit of risk. The DAEDUCK ELECTRONICS CoLtd is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 799,000 in DAEDUCK ELECTRONICS CoLtd on October 29, 2024 and sell it today you would earn a total of 42,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Koryo Credit Information |
| DAEDUCK ELECTRONICS CoLtd |
Koryo Credit and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Koryo Credit and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, DAEDUCK 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Koryo Credit vs. Dongbu Insurance Co | Koryo Credit vs. Choil Aluminum | Koryo Credit vs. Korea Computer | Koryo Credit vs. Hanjoo Light Metal |
| DAEDUCK ELECTRONICS vs. Hankook Furniture Co | DAEDUCK ELECTRONICS vs. Leaders Technology Investment | DAEDUCK ELECTRONICS vs. Daol Investment Securities | DAEDUCK ELECTRONICS vs. GS Retail 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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