Correlation Between Duksan Hi and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Shinil Industrial 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 Duksan Hi and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Shinil Industrial Co, you can compare the effects of market volatilities on Duksan Hi and Shinil Industrial 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 Duksan Hi with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Shinil Industrial.
Diversification Opportunities for Duksan Hi and Shinil Industrial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and Shinil is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of Duksan Hi i.e., Duksan Hi and Shinil Industrial go up and down completely randomly.
Pair Corralation between Duksan Hi and Shinil Industrial
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 2.61 times more return on investment than Shinil Industrial. However, Duksan Hi is 2.61 times more volatile than Shinil Industrial Co. It trades about -0.01 of its potential returns per unit of risk. Shinil Industrial Co is currently generating about -0.06 per unit of risk. If you would invest 567,000 in Duksan Hi Metal on October 30, 2024 and sell it today you would lose (163,500) from holding Duksan Hi Metal or give up 28.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Shinil Industrial Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Shinil Industrial |
Duksan Hi and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Shinil Industrial
The main advantage of trading using opposite Duksan Hi and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Shinil Industrial 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| Duksan Hi vs. Shinhan Inverse Silver | Duksan Hi vs. JYP Entertainment Corp | Duksan Hi vs. YG Entertainment | Duksan Hi vs. Barunson Entertainment Arts |
| Shinil Industrial vs. Youngsin Metal Industrial | Shinil Industrial vs. Dongbang Transport Logistics | Shinil Industrial vs. Daejung Chemicals Metals | Shinil Industrial vs. Automobile Pc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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