Correlation Between Duksan Hi and Total Soft
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Total Soft 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 Total Soft 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 Total Soft Bank, you can compare the effects of market volatilities on Duksan Hi and Total Soft 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 Total Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Total Soft.
Diversification Opportunities for Duksan Hi and Total Soft
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Duksan and Total is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Total Soft Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Soft Bank 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 Total Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Soft Bank has no effect on the direction of Duksan Hi i.e., Duksan Hi and Total Soft go up and down completely randomly.
Pair Corralation between Duksan Hi and Total Soft
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Total Soft. But the stock apears to be less risky and, when comparing its historical volatility, Duksan Hi Metal is 2.32 times less risky than Total Soft. The stock trades about -0.3 of its potential returns per unit of risk. The Total Soft Bank is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 545,000 in Total Soft Bank on September 1, 2024 and sell it today you would lose (77,000) from holding Total Soft Bank or give up 14.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Total Soft Bank
Performance |
| Timeline |
| Duksan Hi Metal |
| Total Soft Bank |
Duksan Hi and Total Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Total Soft
The main advantage of trading using opposite Duksan Hi and Total Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Total Soft 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 Total Soft will offset losses from the drop in Total Soft's long position.| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. PJ Metal Co | Duksan Hi vs. Dongbang Transport Logistics | Duksan Hi vs. Nasmedia Co |
| Total Soft vs. Devsisters corporation | Total Soft vs. Konan Technology | Total Soft vs. Nice Information Telecommunication | Total Soft vs. InfoBank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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