Correlation Between Duksan Hi and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Ssangyong Information 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 Ssangyong Information 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 Ssangyong Information Communication, you can compare the effects of market volatilities on Duksan Hi and Ssangyong Information 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 Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Ssangyong Information.
Diversification Opportunities for Duksan Hi and Ssangyong Information
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duksan and Ssangyong is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information 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 Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Duksan Hi i.e., Duksan Hi and Ssangyong Information go up and down completely randomly.
Pair Corralation between Duksan Hi and Ssangyong Information
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 1.84 times more return on investment than Ssangyong Information. However, Duksan Hi is 1.84 times more volatile than Ssangyong Information Communication. It trades about 0.0 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.02 per unit of risk. If you would invest 541,000 in Duksan Hi Metal on October 15, 2024 and sell it today you would lose (136,000) from holding Duksan Hi Metal or give up 25.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Ssangyong Information Communic
Performance |
| Timeline |
| Duksan Hi Metal |
| Ssangyong Information |
Duksan Hi and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Ssangyong Information
The main advantage of trading using opposite Duksan Hi and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Duksan Hi vs. Hanshin Construction Co | Duksan Hi vs. Seohee Construction Co | Duksan Hi vs. Inzi Display CoLtd | Duksan Hi vs. Nam Hwa Construction |
| Ssangyong Information vs. Kbi Metal Co | Ssangyong Information vs. Hanjoo Light Metal | Ssangyong Information vs. Choil Aluminum | Ssangyong Information vs. PJ Metal 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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