Correlation Between Duksan Hi and Insung Information
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Insung 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 Insung 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 Insung Information Co, you can compare the effects of market volatilities on Duksan Hi and Insung 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 Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Insung Information.
Diversification Opportunities for Duksan Hi and Insung Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duksan and Insung is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung 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 Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Duksan Hi i.e., Duksan Hi and Insung Information go up and down completely randomly.
Pair Corralation between Duksan Hi and Insung Information
Assuming the 90 days trading horizon Duksan Hi is expected to generate 46.61 times less return on investment than Insung Information. But when comparing it to its historical volatility, Duksan Hi Metal is 1.51 times less risky than Insung Information. It trades about 0.0 of its potential returns per unit of risk. Insung Information Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 183,188 in Insung Information Co on August 28, 2024 and sell it today you would earn a total of 9,612 from holding Insung Information Co or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Insung Information Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Insung Information |
Duksan Hi and Insung Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Insung Information
The main advantage of trading using opposite Duksan Hi and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Insung 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 Insung Information will offset losses from the drop in Insung Information's long position.| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
| Insung Information vs. Korea Real Estate | Insung Information vs. Korea Ratings Co | Insung Information vs. IQuest Co | Insung Information vs. Wonbang Tech 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |