Correlation Between Duksan Hi and Haesung Industrial
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Haesung 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 Haesung 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 Haesung Industrial Co, you can compare the effects of market volatilities on Duksan Hi and Haesung 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 Haesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Haesung Industrial.
Diversification Opportunities for Duksan Hi and Haesung Industrial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and Haesung is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Haesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung 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 Haesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Industrial has no effect on the direction of Duksan Hi i.e., Duksan Hi and Haesung Industrial go up and down completely randomly.
Pair Corralation between Duksan Hi and Haesung Industrial
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Haesung Industrial. In addition to that, Duksan Hi is 2.02 times more volatile than Haesung Industrial Co. It trades about -0.24 of its total potential returns per unit of risk. Haesung Industrial Co is currently generating about -0.27 per unit of volatility. If you would invest 673,000 in Haesung Industrial Co on August 30, 2024 and sell it today you would lose (60,000) from holding Haesung Industrial Co or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Haesung Industrial Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Haesung Industrial |
Duksan Hi and Haesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Haesung Industrial
The main advantage of trading using opposite Duksan Hi and Haesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Haesung 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 Haesung Industrial will offset losses from the drop in Haesung Industrial's long position.| Duksan Hi vs. Daou Data Corp | Duksan Hi vs. Busan Industrial Co | Duksan Hi vs. Busan Ind | Duksan Hi vs. Shinhan WTI Futures |
| Haesung Industrial vs. Moadata Co | Haesung Industrial vs. Dongbang Transport Logistics | Haesung Industrial vs. Daou Data Corp | Haesung Industrial vs. Hanjoo Light Metal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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