Correlation Between Guyoung Technology and Daol Investment
Can any of the company-specific risk be diversified away by investing in both Guyoung Technology and Daol Investment 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 Guyoung Technology and Daol Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guyoung Technology Co and Daol Investment Securities, you can compare the effects of market volatilities on Guyoung Technology and Daol Investment 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 Guyoung Technology with a short position of Daol Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guyoung Technology and Daol Investment.
Diversification Opportunities for Guyoung Technology and Daol Investment
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guyoung and Daol is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guyoung Technology Co and Daol Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daol Investment Secu and Guyoung Technology 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 Guyoung Technology Co are associated (or correlated) with Daol Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daol Investment Secu has no effect on the direction of Guyoung Technology i.e., Guyoung Technology and Daol Investment go up and down completely randomly.
Pair Corralation between Guyoung Technology and Daol Investment
Assuming the 90 days trading horizon Guyoung Technology is expected to generate 19.87 times less return on investment than Daol Investment. But when comparing it to its historical volatility, Guyoung Technology Co is 1.12 times less risky than Daol Investment. It trades about 0.0 of its potential returns per unit of risk. Daol Investment Securities is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 316,549 in Daol Investment Securities on October 16, 2024 and sell it today you would lose (23,049) from holding Daol Investment Securities or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guyoung Technology Co vs. Daol Investment Securities
Performance |
| Timeline |
| Guyoung Technology |
| Daol Investment Secu |
Guyoung Technology and Daol Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guyoung Technology and Daol Investment
The main advantage of trading using opposite Guyoung Technology and Daol Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guyoung Technology position performs unexpectedly, Daol Investment 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 Daol Investment will offset losses from the drop in Daol Investment's long position.| Guyoung Technology vs. AptaBio Therapeutics | Guyoung Technology vs. Cytogen | Guyoung Technology vs. Woori Technology Investment | Guyoung Technology vs. ABL Bio |
| Daol Investment vs. DSC Investment | Daol Investment vs. Pureun Mutual Savings | Daol Investment vs. Atinum Investment Co | Daol Investment 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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