Correlation Between Duksan Hi and SOOSAN INT
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and SOOSAN INT 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 SOOSAN INT 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 SOOSAN INT Co, you can compare the effects of market volatilities on Duksan Hi and SOOSAN INT 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 SOOSAN INT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and SOOSAN INT.
Diversification Opportunities for Duksan Hi and SOOSAN INT
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and SOOSAN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and SOOSAN INT Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOOSAN INT 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 SOOSAN INT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOOSAN INT has no effect on the direction of Duksan Hi i.e., Duksan Hi and SOOSAN INT go up and down completely randomly.
Pair Corralation between Duksan Hi and SOOSAN INT
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the SOOSAN INT. In addition to that, Duksan Hi is 1.33 times more volatile than SOOSAN INT Co. It trades about -0.23 of its total potential returns per unit of risk. SOOSAN INT Co is currently generating about -0.27 per unit of volatility. If you would invest 992,000 in SOOSAN INT Co on August 31, 2024 and sell it today you would lose (131,000) from holding SOOSAN INT Co or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. SOOSAN INT Co
Performance |
| Timeline |
| Duksan Hi Metal |
| SOOSAN INT |
Duksan Hi and SOOSAN INT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and SOOSAN INT
The main advantage of trading using opposite Duksan Hi and SOOSAN INT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, SOOSAN INT 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 SOOSAN INT will offset losses from the drop in SOOSAN INT's long position.| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
| SOOSAN INT vs. Cots Technology Co | SOOSAN INT vs. Lion Chemtech Co | SOOSAN INT vs. A Tech Solution Co | SOOSAN INT vs. Pureun Mutual Savings |
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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